economics: chapter 5 - vocab

sole proprietorship

a business owned and managed by a single individual

liability

the legal obligation to pay debts

partnership

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

general partnership

a type of partnership in which all partners share equally in both responsibility and liability

limited partnership

a type of partnership in which only one partner is required to be a general partner, while other partners have limited responsibilities

limited liability partnership

a type of partnership in which all partners are limited partners

assets

the money and other valuables belonging to an individual or business

corporation

a legal entity or being, owned by individual stockholders, each of whom has limited liability for the firm’s debts

stock

a certificate of ownership in a corporation

bond

a formal contract issued by a corporation or other entity that includes a promise to repay borrowed money with interest at fixed intervals

dividend

the portion of corporate profits paid out to stockholders

limited liability corporation

a type of business with limited liability for owners, with the advantages of not paying corporate income tax

cooperative

a business organization owned and operated by a group of individuals for their shared benefits

consumer cooperative

a retail outlet owned and operated by consumers that sell merchandise to members at reduced prices

service cooperatives

a type of cooperative that provides a service rather than a good

producer cooperative

an agricultural marketing cooperative that helps members sell their products

nonprofit organization

an institution that functions much like business but does not operate for the purpose of making profit

professional organization

a nonprofit organization that works to improve the image, working conditions, and skill levels of people in particular occupations

business association

a nonprofit group organized to promote the collective business interests of an area or a group of similar businesses

trade association

a nonprofit organization that promotes the interests of a particular industry

labor force

all nonmilitary people who are employed or unemployed (>16 years old)

outsourcing

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

offshoring

the movement of some of a company’s operations, or resources of production, to another country

unskilled labor

work that requires no specialized skills, education, or training

skilled labor

work that requires specialized skills and trainining

professional labor

work that requires advanced skills and education

labor union

an organization for workers that tries to improve working conditions, wages, and benefits for its members

strike

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

right-to-work law

a measure that bans mandatory union membership

mediation

a settlement technique in which a neutral person, the mediator, meets with each side to try to find a solution that both sides will accept

arbitration

a settlement technique in which a neutral third party listens to both sides and then imposes a decision that is legally binding for both the company and the union

collective bargaining

a union and company management meet to negotiate a new labor contract

semi-skilled

minimal specialized skills and education