Types of Businesses
business run by a single person
sole-proprietor
what is collective bargaining
union tactic of negotiating for all employees as a group
This convenience is known for its extremely high interest payments if the bill is not paid in its entirety each month
credit cards
Why do people get a cost of living raise most years?
keep the buying power of their wage given inflation
inflation lowers the buying power of minimum wage
Give an example of a nonprofit.
answers will vary
what does a nonprofit do with a profit
How can you protect your creditworthiness?
paying your bills on time
checking your credit history
having a good relationship with your bank
what is the impact of senority on wages?
make more
Name three causes of the gender wage gap.
differences in skill/experience/education
gender based occupations choices
discrimination
A company with 4 or more unrelated businesses
conglomerate
the goal of a venture capitalist
make money
Being able to carry paper money around with you easily is an example of this characteristic of money
portability
What is the name of the US central bank
the Fed (Federal Reserve)
Name a tactic used by labor in fights with management and one tactic that only management uses in fights with labor.
Labor- strikes, boycotts, picket
Management- lockouts
What is meant by limited life in a business and what types of businesses is it most associated with?
bound to the life of its owners
sole proprietorships and partnerships
Explain vertical mergers.
Merging businesses in the same supply chain.
ease and clarity
What was the original and primary goal of unions?
join together to more effectively push for better wages and working conditions
According to the market theory of wage determination, how is the value of labor determined?
supply and demand/market forces
What are the advantages and disadvantages of a sole proprietorship?
Ad- easy to start, easy to manage, keep all the profits
Dis- limited life, limited expertise, hard to attract investment and talent, unlimited liability
Explain horizontal integration/mergers.
combining like businesses
Name and explain the three functions of money.
Store of value (saving)
Unit of account (expressing value)
Medium of exchange (simplifying trade)
Why do some states pass right to work laws?
keep people from having to join unions
According to signaling theory, what is the primary way that people determine the value of someone's skills/labor in the market?
Education, degrees, certificates