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Define surplus.
Situation where quantity supplied is greater than quantity demanded at a given price
Define foreclosure.
Process in which a lender reclaims the property due to a lack of payment by the borrower
Define bonds.
Formal contract to repay borrowed money and interest on the borrowed money at regular future intervals
Define credit union.
Nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services
Define minimum wage.
Lowest legal wage that can be paid to most workers
Market structure characterized by a single producer; form of imperfect competition
Define sole proprietorship.
Unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; most common form of business organization in the United States
Define franchise.
Business investment that involves renting or leasing another successful business model
Define collective bargaining.
Process of negotiating between union and management representatives over pay, benefit, and job-related matters
Define federal reserve system (Fed).
Privately owned, publicly controlled, central bank of the United States
Define oligopoly.
Market structure in which a few large sellers dominate the market and have the ability to affect prices in the industry; form of imperfect competition
Define inventory.
Stock of goods held in reserve; includes finished goods waiting to be sold and raw materials to be used in production
Define depreciation.
Gradual wear on capital goods
Define boycott.
Protest in the form of refusal to buy, including attempts to convince others to take their business elsewhere
Define federal deposit insurance corporation (FDIC).
The united states government institution that provides deposit insurance on the depositor's account
Define laissez-faire.
Philosophy that government should not interfere with business activity
Define corporation.
Form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued
Define crowdfunding.
Using social networking to appeal to potential investors
Define closed shop.
Arrangement under which workers must join a union before they are hired; usually illegal
Define certificate of deposit (CD).
Receipt showing that an investor has made an interest bearing loan to a financial institution
Define mortgage.
Legal document that pledges ownership of a home to a lender as security for repayment of borrowed money
Define stocks.
Certificate of ownership of a corporation; common or preferred stock
Define nonprofit organization.
Economic institution that operates like a business but does not seek financial gain; schools, churches, and community-service organizations are examples
Define right to work laws.
State law making it illegal to require a worker to join a union
Regular allowance for someone who has worked a certain number of years, reached a certain age, or who has suffered from an injury