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Chapter 22
Term | Definition |
---|---|
Sole Proprietorship | A business owned and operated by a single person |
Financial Capital | Money used to buy the tools and equipment used in production |
Partnership | A business owned by two or more people |
Articles of Partnership | Formal legal papers specifying the arrangement between partners |
Corporation | Type of business organization owned by many people but treated by law as though it were a person |
Charter | A government document granting permission to organize a corporation |
Stock | Ownership share of a company |
Stockholder | An individual who has invested in a corporation and owns some of its stock |
Board of Directors | People elected by the shareholders of a corporation to act on their behalf |
Cooperative | A voluntary association of people formed to carry on some kind of economic activity that will benefit its members |
Labor Union | Association of workers organized to improve wages and working conditions |
Right-to-Work Law | State laws forbidding unions from forcing workers to join |
Collective Bargaining | Process by which unions and employers negotiate the conditions of employment |
Mediation | Situation in which union and company officials bring in a third party to try to help them reach an agreement |
Arbitration | Situation in which union and company officials submit the issues they cannot agree on to a third party for a final decision |
Strike | When workers deliberately stop working in order to force an employer to give in to their demands |
Boycott | The refusal to purchase certain goods |
Transparency | Process of making business deals more visible to everyone |
Discrimination | Unfair treatment based on prejudice against a certain group |
Social Responsibility | The obligation a business has to pursue goals that benefit society as well as themselves |