Untitled Flashcards Set

Sole proprietorship

A business owned and managed by a single individual.

Partnership

A business organization owned by two or more persons who agree on a specific division of responsibilities and profits.

Corporations

A legal entity owned by individual stockholders, who have limited liability for the corporation's debts.

Franchise

A contract that gives a single firm the right to sell its goods within an exclusive market.

Nonprofit organizations

An institution that functions much like a business but does not operate to make a profit.

Cooperative

A business organization owned and operated by a group of individuals for their shared benefit.

Financial capital

The money needed to run a business or make it grow.

Stock

A certificate of ownership in a corporation.

Stockholder

Someone who owns shares in a corporation.

Transparency

A company is transparent if a lot of their financial information is available.

Labor force

All nonmilitary people who are employed or unemployed.

Outsourcing

The practice of contracting with another company to do a specific job that would otherwise be done by a company’s workers.

Glass ceiling

An unofficial barrier that sometimes prevents some women and minorities from advancing to the top rank of organizations dominated by men.

Labor unions

An organization of workers that tries to improve working conditions, wages, and benefits for their members.

Right-to-work laws

Measures that ban mandatory union membership.

Collective bargaining

The process in which a union and company management meet to negotiate a new labor contract.

Mediation

A neutral, trained mediator works to help disputants come to a solution on their own.

Arbitration

A neutral, trained mediator serves as a judge responsible for solving the dispute.

Strike

An organized work stoppage intended to force an employer to address union demands.

Perfect competition

A market structure in which a large number of firms all produce the same product and no single seller controls supply or prices.

Barriers to entry

Any factor that makes it difficult for a new firm to enter a market.

Monopoly

A market in which a single seller dominates.

Natural monopoly

A market that runs most efficiently when one large firm provides all of the output.

Price discrimination

The division of consumers into groups based on how much they will pay for a good.

Monopolistic competition

A market structure in which many companies sell products that are similar but not identical.

Non-price competition

A way to attract customers through style, service, or location, rather than a lower price.

Oligopoly

A market structure in which a few large firms dominate a market.

Merger

When two or more companies join to form a single firm.