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Honors Economics > Unit 3: Business and Labor > Flashcards

Unit 3: Business and Labor Flashcards

(73 cards)

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1
Q

Sole Proprietorship Definition

A

a business owned and managed by a single individual

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2
Q

General Partnership Definition

A

a basic business arrangement in which two or more people have agreed to engage in business practices together, to share in all assets and profits, and to share the responsibilities of both financial and legal liabilities of a jointly owned business structure

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3
Q

Limited Life Definition

A

refers to the limited life of the partnership

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4
Q

Limited Liability Partnership Definition

A

a partnership in which all partners are limited partners

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5
Q

Limited Partnership Definition

A

a partnership in which only one partner is required to be a general partner

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6
Q

Mutual Agency Definition

A

all of the partners in the business have the same legal and authorization rights when representing the business

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7
Q

Unlimited Liability Definition

A

each partner is responsible for any debts incurred by the firm

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8
Q

Unlimited Life Definition

A

The ability of a business to operate indefinitely despite changes in ownership, management, etc

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9
Q

Board of Directors Definition

A

a group of individuals appointed by the shareholders of a corporation who are responsible for making management decisions and overseeing the day-to-day operations of the business

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10
Q

Certificate of Incorporation

A

a legal document or license issued by the state government to allow owners of a business to create a corporation as a separate legal entity

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11
Q

Closely Held Corporation

A

private corporations that do not sell their stock to the general public

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12
Q

Corporation Definition

A

businesses that have been created and legally filed as a separate entity from the owners of the business

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13
Q

Dividends Definition

A

portions of corporate profits distributed to shareholders

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14
Q

Incorporation Definition

A

the process of legally filing a business as a corporation and obtaining government approval and a corporate charter

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15
Q

Limited Liability Definition

A

owners and shareholders are not personally liable for any debts or liabilities incurred by the business

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16
Q

Publicly Held Corporation Definition

A

corporations that can raise capital and acquire funding by selling company stock on the public market

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17
Q

Securities and Exchange Commission Definition

A

U.S. government agency that is responsible for regulating the stock market and protecting investors from dangerous or illegal financial practices

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18
Q

Shareholders Definition

A

investors in a corporation who own shares of common stock

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19
Q

Stock Definition

A

shares of ownership distributed by a corporation to investors

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20
Q

Cooperatives Definition

A

A voluntary association of people formed to carry on some kind of activity that will mutually benefit the participants.

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21
Q

Consumer Cooperative Definition

A

A volunteer association that was brought together to buy goods like food and clothes in bulk.

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22
Q

Franchise Definition

A

A business that pays an up-front fee and any applicable royalties to a franchisor for access to their business model, products, advertising and marketing, and branding.

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23
Q

Franchisor Definition

A

A company that owns the royalties, trademarks, and products of a brand and sells the rights to franchisees at a cost.

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24
Q

Franchisee Definition

A

An individual or group of individuals that purchase the rights to a franchise to create their own franchise location.

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25
Internal Revenue Service Definition
A government agency that handles all revenue services, including the taxing of businesses and individuals.
26
Nonprofit Organization Definition
An organization that has been awarded tax-exempt status by the Internal Revenue Service (IRS) because it promotes a social cause and provides a benefit to the public rather than seek financial gain for its owners.
27
Not-for-profit Organization Definition
An organization that has been awarded tax-exempt status by the Internal Revenue Service (IRS) because it does not seek financial gain and promotes the collective goals of its members. A not-for-profit organization does not need to provide a public benefit.
28
Private Foundations Definition
Nonprofit organizations featuring funding coming from private families, single individuals, or a corporation.
29
Producers Cooperative Definition
A marketing cooperative that helps members to sell their products to companies, central marketers, or consumers.
30
Public Charities Definition
Nonprofit organizations that receive their funds from a broad base of contributors including individuals, corporations, and possibly government grants.
31
Service Cooperative Definition
A cooperative that provides a service rather than a good.
32
Tax Deduction Definition
reduces an individuals taxable income and how much taxes they owe.
33
Labor Force Definition
the group of individuals in an economy who are either employed or actively seeking employment
34
Labor Market Definition
the market for employment in an economy
35
Labor Market Trends Definition
changes in the conditions in labor markets that influence labor market demand or labor market supply
36
Occupational Trend Definition
a sustained movement in a particular labor market that can relate to job growth, job loss, labor force, or changes in wage rates
37
Reservation Wage Definition
the lowest wage at which a person will consider working in a particular position or type of employment
38
Marginal Revenue Product of Labor Definition
the additional revenue a firm generates by employing one additional unit of labor
39
Law of Diminishing Marginal Returns Definition
at a certain level of factors of production, there is a decrease in the marginal output of a production process as the amount of a single factor of production is incrementally increased, while all other factors of production remain constant
40
Marginal Cost of Labor Definition
the amount the firm must pay for each additional worker that it hires
41
Market Supply of Labor Definition
the quantity of workers of a given type and skill level who willingly supply their labor to firms at various wage levels
42
Learning Effect Definition
the method by which education increases the productivity and skill level of workers and allows these workers to demand higher wages
43
Skilled Labor Definition
labor that is highly trained, educated, and experienced
44
Unskilled Labor Definition
labor that does not require workers to have any specialized training or skill sets
45
Screening Effect Definition
the theory that completion of college or higher education indicates that a job applicant is both intelligent and hard working
46
Minimum Wage Definition
the lowest hourly rate at which an employer must pay an employee under U.S. law
47
Wage Discrimination Definition
when employers make hiring and wage decisions based on factors such as race, gender, and religion without consideration of job skills, level of education, experience, or expertise
48
Arbitration Definition
A process that involves a neutral third party that has the power to resolve a dispute by rendering a mandatory decision that is legally binding.
49
Boycott Definition
A tactic in which a union as well as its supporters and sympathizers refuse to engage in business with a firm with which the union has a labor dispute.
50
Clayton Antitrust Act of 1914 Definition
A law that enabled workers to go on strike against their employers.
51
Closed Shop Definition
An agreement made between an employer and union where, before hiring an employee, the worker must already be a member of the union.
52
Collective Bargaining Definition
The practice featuring representatives of labor and management attempting to negotiate a mutually acceptable labor agreement.
53
Craft Union Definition
A union that represents workers who have the same skill or work in the same profession.
54
Distributive Bargaining Definition
The conventional approach to collective bargaining featuring both parties negotiating but not exactly working together in resolving their differences.
55
Fair Labor Standards Act Definition
A law that granted workers the right to an established minimum wage and overtime pay for work weeks that exceeded 40 hours.
56
Grievances Definition
Complaints filed by workers regarding violations of collective bargaining contracts when they believe they have been treated unfairly and their contract has been breached.
57
Industrial Union Definition
A union that represents workers who are in the same industry but have different positions or skills.
58
Interest-Based Bargaining Definition
A negotiation approach featuring parties collaborating to find a "win-win" solution to their dispute.
59
Labor Management Relations Act of 1947 Definition
Limited the influence and abilities of labor unions, such as the ability to enforce closed shop and union shop agreements with employers.
60
Labor Union Definition
An assembly of workers who have organized in order to pursue common work-related goals.
61
Lockout Definition
Action taken by employers refusing to allow employees access to the worksite.
62
Mediation Definition
A process involving a neutral outsider bought in to help the two sides reach an agreement but who has no authority over decision-making.
63
National Labor Relations Act Definition
A law that gave private-sector employees the right to unionize and use collective bargaining and collective action.
64
Open Shop Definition
The condition allowing workers hired by an employer not have to join a union but still entitled to the same benefits and pay.
65
Picketing Definition
A union tactic used during labor disagreements where the workers walk outside of the employer's location with signs that highlight their grievances.
66
Right-to-Work Laws Definition
Laws that prevent union-security agreements between unions and employers and allow for open-shop agreements.
67
Strike Definition
An organized work stoppage by workers to force an employer to address union demands.
68
Union Shop Definition
The condition that allows workers who do not belong to the union to be hired. However, they need to join the union with a specific time period if they want to remain employed.
69
Human Capital Definition
the knowledge and skills a worker gains through education and experience.
70
Labor Productivity Definition
The ratio between the total output of goods and services and the number of labor hours worked.
71
Physical Capital Definition
man-made objects used to create other goods and services.
72
Productivity Definition
ratio between the number of inputs or factors of production required to produce a good or service and the level of output.
73

Honors Economics (5 decks)

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