mgmt 200 final fr

Flashcard #1
Term: Sole Proprietorship
Definition: A business owned by one person without a separate business entity. Advantages: no double taxation. Disadvantages: unlimited personal liability, difficulty raising capital.

Flashcard #2
Term: General Partnership
Definition: A business arrangement where two or more persons agree to be co-owners of a business for profit. Can be formed orally, in writing, or implied by conduct.

Flashcard #3
Term: Limited Partnership
Definition: A partnership with at least one general partner and one limited partner. Limited partners have limited liability and do not manage the business.

Flashcard #4
Term: Uniform Partnership Act (UPA)
Definition: A law that fills in gaps not addressed in a partnership agreement, providing default rules for partnerships.

Flashcard #5
Term: Fiduciary Duty
Definition: An obligation of absolute loyalty to another person or entity. Corporate directors, officers, and partners owe fiduciary duties to shareholders and other partners.

Flashcard #6
Term: Respondeat Superior
Definition: A legal doctrine holding employers liable for the negligent conduct of their employees performed within the scope of employment.

Flashcard #7
Term: Limited Liability Company (LLC)
Definition: A business structure with one or more members, offering limited liability to its owners and taxed like a partnership.

Flashcard #8
Term: Corporation
Definition: A legal entity recognized by the state, owned by shareholders, with rights and responsibilities. Can be public or private.

Flashcard #9
Term: Public Corporation
Definition: A corporation with stock traded on public exchanges, subject to government regulations to ensure proper accounting and reporting to shareholders.

Flashcard #10
Term: Private Corporation
Definition: A corporation with a small number of shareholders, not traded on public markets, and not subject to the same reporting requirements as public corporations.

Flashcard #11
Term: Board of Directors
Definition: A group elected by shareholders responsible for corporate policy, hiring officers, and major financial decisions.

Flashcard #12
Term: Shareholders
Definition: Owners of a corporation who have rights to vote on major decisions, receive dividends, and bring lawsuits against the company.

Flashcard #13
Term: Business Judgment Rule
Definition: A principle protecting directors and officers from liability for decisions made in good faith and with a reasonable basis.

Flashcard #14
Term: S Corporation
Definition: A corporation with a limited number of shareholders, offering pass-through taxation and no personal liability for owners.

Flashcard #15
Term: Professional Corporation (PC)
Definition: A corporation for professionals like doctors, limiting liability to investment and not for the errors of other professionals.

Flashcard #16
Term: Benefit Corporation
Definition: A corporation that includes goals beyond profit maximization, such as considering the environment or social impact.

Flashcard #17
Term: Franchise
Definition: A business model where the owner of a trademark or trade name authorizes its use to another, subject to federal and state laws.

Flashcard #18
Term: Dissolution
Definition: The legal ending of a partnership, followed by winding up, which involves settling the partnership's affairs.

Flashcard #19
Term: Winding Up
Definition: The process of settling a partnership's affairs after dissolution, including paying debts and distributing remaining assets.

Flashcard #20
Term: Apparent Authority
Definition: The power of a partner to bind the partnership in contracts, even if acting outside their authority, if the partnership ratifies the act.

Flashcard #21
Term: Ratification
Definition: Acceptance and liability for an act performed by a partner outside their authority, making the partnership responsible.

Flashcard #22
Term: Partnership by Estoppel
Definition: A situation where a person represents themselves as a partner, and a third party relies on this representation to their detriment.

Flashcard #23
Term: Clawbacks
Definition: The recovery of bonuses or stock options given based on erroneous information, such as restated profits or misconduct.

Flashcard #24
Term: Corporate Veil
Definition: The legal distinction between the corporation and its shareholders, protecting shareholders from personal liability except in cases of fraud or injustice.

Flashcard #25
Term: Antitrust Law
Definition: Laws designed to preserve the competitive process in the market.

Flashcard #26
Term: Sherman Act
Definition: A foundational antitrust law that prohibits monopolistic practices and restraints of trade.

Flashcard #27
Term: Per Se Rules
Definition: Actions that are inherently illegal under antitrust laws without needing further analysis.

Flashcard #28
Term: Rule of Reason
Definition: A legal doctrine used to determine if a business practice is anticompetitive by considering its context and impact.

Flashcard #29
Term: Tying
Definition: A practice where the sale of one product is conditioned on the purchase of another product.

Flashcard #30
Term: Mergers
Definition: The combination of two or more companies, which can affect market competition.

Flashcard #31
Term: Market Shares
Definition: The portion of a market controlled by a particular company or product.

Flashcard #32
Term: Cross Border Enforcement
Definition: Application of antitrust laws to activities that affect competition across national borders.

Flashcard #33
Term: Lina Kahn
Definition: Chair of the Federal Trade Commission known for her work on antitrust laws, especially regarding big tech.

Flashcard #34
Term: Amazon Basics
Definition: Amazon's private label brand, often cited in discussions of antitrust concerns.

Flashcard #35
Term: Trusts
Definition: Large business entities that dominate a market, often leading to antitrust actions.

Flashcard #36
Term: Federal Trade Commission (FTC)
Definition: A government agency that enforces antitrust laws and protects consumers.

Flashcard #37
Term: Standing
Definition: The legal right to bring a lawsuit, requiring a direct connection to and harm from the law in question.

Flashcard #38
Term: Horizontal Restraints
Definition: Anticompetitive agreements between competitors at the same level of the market structure.

Flashcard #39
Term: Bid Rigging
Definition: A form of fraud where competitors agree on who will win a bid, undermining the bidding process.

Flashcard #40
Term: Price Fixing
Definition: An agreement between competitors to set prices at a certain level, rather than letting competition in the market determine them.

Flashcard #41
Term: Territorial Divisions
Definition: Agreements between competitors to divide markets geographically to avoid competition.

Flashcard #42
Term: Group Boycotts
Definition: Agreements between businesses to refuse to deal with a particular company or person.

Flashcard #43
Term: Covenants Not to Compete
Definition: Agreements where one party agrees not to enter into or start a similar profession or trade in competition against another party.

Flashcard #44
Term: Monopoly Power
Definition: The ability of a company to control prices and exclude competition in a particular market.

Flashcard #45
Term: Predatory Pricing
Definition: Setting prices low in an attempt to eliminate the competition and then raising prices once competitors are driven out.

Flashcard #46
Term: Clayton Act
Definition: An antitrust law that addresses specific practices that the Sherman Act does not clearly prohibit, such as mergers and interlocking directorates.

Flashcard #47
Term: Relevant Market
Definition: The market in which a company operates, defined by product and geographic area.

Flashcard #48
Term: Market Share
Definition: The percentage of a market accounted for by a specific entity.

Flashcard #49
Term: Antitrust Division of the Justice Department
Definition: The division responsible for enforcing federal antitrust laws.

Flashcard #50
Term: Consent Decree
Definition: A legal agreement that settles a dispute between two parties without admission of guilt.

Flashcard #51
Term: OEMs (Original Equipment Manufacturers)
Definition: Companies that produce parts and equipment that may be marketed by another manufacturer.

Flashcard #52
Term: Natural Monopoly
Definition: A market structure where a single firm can provide a good or service at a lower cost than any competitor, often due to economies of scale.

Flashcard #53
Term: Economies of Scale
Definition: Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Flashcard #54
Term: Treble Damages
Definition: A provision that allows a court to triple the amount of the actual/compensatory damages to be awarded to a prevailing plaintiff.

Flashcard #55
Term: Injunctive Relief
Definition: A court-ordered act or prohibition against certain actions.

Flashcard #56
Term: FTC
Definition: Federal Trade Commission, responsible for enforcing antitrust laws and protecting consumers.

Flashcard #57
Term: Rule of Reason
Definition: A legal doctrine used to interpret the Sherman Act, considering the context and impact of a business practice to determine if it is anticompetitive.

Flashcard #58
Term: Per Se Rule
Definition: A legal doctrine under which certain business practices are deemed illegal without the need for further analysis.

Flashcard #59
Term: Vertical Restraints
Definition: Restrictions imposed by a firm at one level of the market on a firm at another level, such as a manufacturer imposing restrictions on a retailer.

Flashcard #60
Term: Market Power
Definition: The ability of a firm to influence the price of a product or terms of sale in the market.

Flashcard #61
Term: Predatory Pricing
Definition: The practice of selling a product at a very low price with the intent to drive competitors out of the market.

Flashcard #62
Term: Tying Arrangement
Definition: A situation where a seller requires the buyer to purchase a second product when buying a primary product.

Flashcard #63
Term: Monopoly
Definition: The exclusive possession or control of the supply or trade in a commodity or service.

Flashcard #64
Term: Antitrust Laws
Definition: Laws designed to promote competition and prevent monopolies.

Flashcard #65
Term: Sherman Act
Definition: A landmark federal statute in the field of competition law passed by Congress in 1890.

Flashcard #66
Term: Clayton Act
Definition: An amendment passed in 1914 that provides further clarification and substance to the Sherman Act on topics such as price discrimination, price fixing, and unfair business practices.

Flashcard #67
Term: Federal Trade Commission Act
Definition: A federal law established in 1914 that outlaws unfair methods of competition and outlaws unfair acts or practices that affect commerce.

Flashcard #68
Term: Merger
Definition: The combination of two or more companies into a single entity, often to increase market share and reduce competition.

Flashcard #69
Term: Acquisition
Definition: The process of acquiring control of another corporation, typically by purchase or stock exchange.

Flashcard #70
Term: Horizontal Merger
Definition: A merger between firms that are selling similar products in the same market.

Flashcard #71
Term: Vertical Merger
Definition: A merger between companies in the same industry but at different stages of production.

Flashcard #72
Term: Conglomerate Merger
Definition: A merger between firms that are involved in totally unrelated business activities.

Flashcard #73
Term: Anticompetitive Practices
Definition: Business practices that reduce or prevent competition in a market.

Flashcard #74
Term: Price Fixing
Definition: An agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price.

Flashcard #75
Term: Bid Rigging
Definition: A form of fraud in which a commercial contract is promised to one party, even though for the sake of appearance several other parties also present a bid.

Flashcard #76
Term: Market Allocation
Definition: An agreement between competitors to divide markets among themselves.

Flashcard #77
Term: Group Boycott
Definition: An agreement by two or more sellers to refuse to deal with a particular person or firm.

Flashcard #78
Term: Exclusive Dealing
Definition: An agreement in which a retailer or wholesaler is tied to purchase from a supplier on the understanding that no other distributor will be appointed or receive supplies in a given area.

Flashcard #79
Term: Monopolization
Definition: The process by which a company gains the ability to raise prices or exclude competitors.

Flashcard #80
Term: Attempted Monopolization
Definition: Actions undertaken by a firm to gain monopoly power, even if they do not succeed.

Flashcard #81
Term: Predatory Pricing
Definition: The practice of selling a product at a very low price with the intent to drive competitors out of the market.

Flashcard #82
Term: Price Discrimination
Definition: The action of selling the same product at different prices to different buyers, in order to maximize sales and profits.

Flashcard #83
Term: Tying
Definition: The practice of making the sale of one good conditional on the purchase of a second distinctive good.

Flashcard #84
Term: Bundling
Definition: The practice of selling multiple products or services together as a single combined unit.

Flashcard #85
Term: Exclusive Dealing
Definition: An arrangement in which a retailer or wholesaler is tied to purchase from a supplier on the understanding that no other distributor will be appointed or receive supplies in a given area.

Flashcard #86
Term: Resale Price Maintenance
Definition: The practice whereby a manufacturer and its distributors agree that the distributors will sell the manufacturer's product at certain prices.

Flashcard #87
Term: Market Division
Definition: An agreement between competitors to divide markets among themselves.

Flashcard #88
Term: Negligence Per Se
Definition: A legal doctrine whereby an act is considered negligent because it violates a statute or regulation.

Flashcard #89
Term: Joint Tortfeasors
Definition: Multiple parties who act together to commit a tort or who contribute to the same tortious act.

Flashcard #90
Term: Class Action
Definition: A lawsuit filed by one or more plaintiffs on behalf of a larger group who are similarly situated.

Flashcard #91
Term: Res Ipsa Loquitur
Definition: A doctrine that infers negligence from the very nature of an accident or injury, in the absence of direct evidence on how any defendant behaved.

Flashcard #92
Term: Assumption of Risk
Definition: A defense in tort law under which a person may not recover for the injuries received from a dangerous activity to which they voluntarily exposed themselves.

Flashcard #93
Term: Intentional Torts
Definition: Torts committed by someone acting with general or specific intent.

Flashcard #94
Term: Duty of Care
Definition: A legal obligation which is imposed on an individual requiring adherence to a standard of reasonable care while performing any acts that could foreseeably harm others.

Flashcard #95
Term: Proximate Cause
Definition: The primary cause of an injury, which is a natural and direct result of the defendant's actions.

Flashcard #96
Term: Strict Liability
Definition: Legal responsibility for damages or injury even if the person found strictly liable was not at fault or negligent.

Flashcard #97
Term: Punitive Damages
Definition: Damages exceeding simple compensation and awarded to punish the defendant.

Flashcard #98
Term: False Imprisonment
Definition: The unlawful restraint of a person against their will by someone without legal authority or justification.

Flashcard #99
Term: Invasion of Privacy
Definition: Intrusion into the personal life of another without just cause, which can give the person whose privacy has been invaded a right to bring a lawsuit for damages.

Flashcard #100
Term: Defamation
Definition: The act of communicating false statements about a person that injure the reputation of that person.

Flashcard #101
Term: Libel
Definition: A written defamatory statement or representation that conveys an unjustly unfavorable impression.

Flashcard #102
Term: Slander
Definition: The action or crime of making a false spoken statement damaging to a person's reputation.

Flashcard #103
Term: Negligence
Definition: Failure to exercise the care that a reasonably prudent person would exercise in like circumstances.

Flashcard #104
Term: Tortfeasor
Definition: A person or entity who commits a tort.

Flashcard #105
Term: Proximate Cause
Definition: An event sufficiently related to a legally recognizable injury to be held to be the cause of that injury.

Flashcard #106
Term: Tort
Definition: A wrongful act or an infringement of a right (other than under contract) leading to civil legal liability.

Flashcard #107
Term: False Claims Act
Definition: A federal law that imposes liability on persons and companies (typically federal contractors) who defraud governmental programs.

Flashcard #108
Term: Double Jeopardy
Definition: A procedural defense that prevents an accused person from being tried again on the same (or similar) charges following a legitimate acquittal or conviction.

Flashcard #109
Term: Securities and Exchange Commission (SEC)
Definition: A U.S. government agency that oversees securities transactions, activities of financial professionals and mutual fund trading to prevent fraud and intentional deception.

Flashcard #110
Term: Public Company Accounting Oversight Board (PCAOB)
Definition: A nonprofit corporation established by Congress to oversee the audits of public companies in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.