Studied by 4 peopleSole Proprietorship
a business owned and managed by a single individual
Partnership
A business in which two or more persons combine their assets and skills
Corporation
A business owned by stockholders who share in its profits but are not personally responsible for its debts
horizontal merger
the combination of two or more firms competing in the same market with the same good or service
vertical merger
the combination of two or more firms involved in different stages of producing the same good or service
conglomerate
a group of diverse companies under common ownership and run as a single organization
Franchise
A business established or operated under an authorization to sell or distribute a company's goods or services in a particular area
Limited Liability Company (LLC)
A company similar to an corporation but without the special eligibility requirements.
non-profit organization
A business whose goal is to provide a service rather than to make a profit, such as the American Red Cross.
co-operative
Business wholly owned by its customers with the emphasis on group decision making.
perfect competition
a market structure in which a large number of firms all produce the same product for a similar price.
price taker
a buyer or seller who cannot affect the market price
Monopoly
A market in which there are many buyers but only one seller.
price maker
a firm that does not have to consider competitors when setting the prices of its products, such as a monopoly
monopolistic competition
a market structure in which many companies sell products that are similar but not identical. These companies have more control over the price.
non-price competition
a way to attract customers through style, service, or location, but not a lower price
Oligopoly
A market structure in which a few large firms dominate a market
Cartel
a formal organization of producers that agree to coordinate prices and production illegally
Collusion
secret agreement or cooperation, usually between oligarchs
labor force
the total number of workers, including both the employed and the unemployed who are looking for a job
derived demand
Business demand that ultimately comes from (derives from) the demand for consumer goods.
unskilled labor
labor that requires no specialized skills, education, or training
semi-skilled labor
labor that requires minimal specialized skills and education
skilled labor
labor that requires specialized skills and training
professional labor
labor that requires advanced skills and education
equilibrium wage
the wage rate that produces neither an excess supply of workers nor an excess demand for workers in the labor market
minimum wage
a minimum price that an employer can pay a worker for an hour of labor
productivity of labor
the quantity of output produced by a unit of labor
Outsourcing
A decision by a corporation to turn over much of the responsibility for production to independent suppliers.
craft/trade union
union made up of skilled workers in a specific trade or industry
industrial union
an organization of common laborers and craft workers in a particular industry
strike
Nonviolent refusal to continue to work until a problem is resolved.
right-to-work laws
A state law forbidding requirements that workers must join a union to hold their jobs.
Wagner Act (1935)
protected the rights of most workers in the private sector to organize labor unions, to engage in collective bargaining, and to take part in strikes and other forms of concerted activity in support of their demands.
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