Chapter 12: The Business Environment: Agency, Employment, Buisness Organizations and Bankruptcy Laws

Employee

One who works for an employer.

Agent

One who acts on behalf another.

Vicarious Liability

Liability for the acts of another.

Actual Authority

The power given, in fact, to an agent by the principal or employer. 

Apparent/Ostensible Authority

Authority created by conduct that leads a third person to believe that authority exists.

Collective Bargaining

Joining together of employees for the purpose of negotiating; often done by a union. 

Employment-at-Will

An employment arrangement without a fixed term. 

Affirmative Action

A policy, such as hiring or school admission, that gives a preference to a group that experienced past discrimination.

Sole Proprietorship

A business owned and operated by one person.

Partnership

A business operated by two or more individuals for profit. 

Limited Partnership

A partnership meeting certain legal formalities and including at least one general partner and at least one limited partner; the limited partner’s liability is limited to the extent of his or her capital contribution.

Officers

The individuals who are responsible for the day-to-day management of a corporation.

Professional Corporation

A corporation formed for the purpose of engaging in certain professions, such as medicine and law.

Close Corporation

A small corporation whose shares of stock are not available to the public. 

Public Corporation

A corporation whose shares of stock can be purchased by anyone.

Limited Liability Partnership (LLP)

An organization that provides limited liability to the partners without restrictions imposed by a limited partnership; may be limited to certain types of professions. 

Limited Liability Company (LLC)

A type of business organization that provides limited liability to its owners; similar to a corporation, but not taxed as a corporation. 

Debtor

One who owes money to another.

Creditor

Someone to whom money is owed.

Discharge

To relieve or forgive.