Vocabulary
What is an ownership share in a corporation called?
Stock
What term is used for a company that operates in multiple countries?
Multinational Corporations
What describes demand that is driven by the need for another product or service?
Derived Demand
What type of labor refers to work that requires minimal training or skills? This category receives the least amount of wages
Unskilled Labor
What term describes the negotiation process between labor unions and employers?
What is the relocation of a business operation to another country called?
Offshoring
What type of merger occurs when two companies in the same industry join forces?
Horizontal Merger
What practice involves hiring external companies to perform certain business activities?
Outsourcing
Which category of labor involves jobs that require some training and basic skills, such as operating machinery? This category receives the second least amount of wages.
Semi-Skilled Labor
What practice involves requiring employers to maintain more workers than necessary?
Featherbedding
What is a portion of a corporation’s profits paid out to shareholders?
Dividend
What type of business entity offers limited liability to its shareholders and exists as a separate legal entity?
What term describes foreign workers who are allowed to work temporarily in a country?
Guest Workers
What category of labor includes positions that require advanced education and expertise? This category receives the greatest amount of wages
Professional labor
What law prohibits making union membership a condition of employment?
Right to Work Laws
What term refers to payments made for the use of someone’s property or intellectual property?
Royalties
What type of partnership provides limited liability to all partners while allowing them to manage the business?
Limited Liability Partnership (LLP)
What term describes the theory that education increases productivity and results in higher wages?
Learning Effect
what are the factors that are needed to be considered employed?
-16 years old
-worked for one hour paid in the past week
-worked for 15+ hours unpaid at a family business
-have a job but temporarily out of work due to PTO, illness, natural disaster, or labor dispute
Why did labor unions first form?
-Protect rights of workers
-improve wages, benefits, and working conditions
-reduce hours
Which financial instrument represents a loan made by an investor to a corporation or government?
Bond
What type of organization is owned and operated for the benefit of its members?
Cooperative
What is the hypothesis that employers use education as a way to assess the productivity and potential of job applicants?
Screening Effect
What factors are required to be considered unemployed?
-Temporarily out of work but have a job lined up
-Have no job lined up but have actively looked for a job in the past four weeks
Why were the 1930s a great time for labor unions?
Congress passed laws favoring unions