Types of Business
A type of corporation that is made up of a number of different, seemingly unrelated businesses
Conglomerate
State law making it illegal to force workers to join a union.
Right to work
Government issued currency that is not backed by a commodity
Fiat Money
Privately owned, publicly controlled, central bank of the US
The Federal Reserve (The Fed)
Lowest legal wage to that can be paid to workers.
Minimum Wage
Identify and describe the three types of business structures.
Sole Proprietorship - owned and operated by one person. Most common small business.
Partnership - Owned and operated by two or more people.
Corporation - Has rights and responsibilities of individuals. Owned by Stockholders and operated by a board of directors.
Th process by which unions and employers negotiate the conditions of employment (wages, benefits, hours).
Collective Bargaining
Identify the three main functions of money.
Medium of Exchange
Store of Value
Measure of Value
Body of laws that prohibits anti-competitive behavior and unfair business practices
Antitrust Laws
Requirement for new employees to join the union once they begin work.
Union Shop
Describe a Limited Partnership, also know as a silent partner.
at least one partner is not active in the daily running of the business and has limited responsibility for the debts.
Identify and define the tools used by labor unions to achieve their goals.
–Strike: union members refuse to work
–Picketing: union tactic in which striking workers walk with signs that express their grievances and bring about public pressure.
Three types of financial institutions.
Commercial Banks, Savings and Loans Associations, and Credit Unions.
Federal program that protects deposits up $250,000
FDIC
Owners of a corporation
Shareholders
What are the 3 advantages of a corporate business structure?
- Easy to raise financial capital (Issuing stock)
- Easy to borrow financial capital (Issuing bonds)
- Owners have limited liability
When a third party decides how to settle the dispute. Both parties are required to accept the decision
Arbitration
The two means through which the Fed measures the money supply.
M1 and M2
US federal law that greatly restricts the activities and power of labor unions
Taft-Hartley Act
Management closes a workplace to prevent union members from working.
Lockout
Explain two methods through which businesses, specifically, corporations expand.
Vertical Integration - control all phases of production from the raw material to the finished product
Horizontal Integration - Buy out your competition until you have control of a single area of industry
Identify four functions of the Labor Unions.
1.Negotiating improvements in wages and nonwage benefits
2.Defending jobs
3.Defending employee working conditions and rights
4.Health & Safety (historically & currently in3rd world)
5.Get a say (a voice) over the direction of the business
6.Provide legal advice/ council to employees
7.Offer training
Measured in the M1 and M2
–M1: coins, currency, travelers' checks, and DDAs held at depository institutions (i.e. banks)
–M2: includes M1 along with forms of money that serve as store of value such as savings, time deposits, and money market funds.
Created an independent agency of the United States government charged with conducting elections for labor union representation and with investigating and remedying unfair labor practices.
National Labor Relations Act
A court order to stop/limit picketing or prevent a strike.
Injunction