Economics Vocab: Ch. 8 And 9

Front 1

Sole Proprietorship (Proprietorship)

Back 1

A business owned and run by a single individual.

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Inventory

Back 2

A stock of finished goods and parts in reserve--to satisfy customers or to keep production flowing smoothly.

Front 3

Partnerships

Back 3

A business that is jointly owned by two or more persons.

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General Partnership

Back 4

Most common form of partnership, all partners are responsible for the management and financial obligations of the business.

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Limited Partnership

Back 5

At least one partner isn't active in the daily running of the business and has limited responsibility for the debts and obligations of the business.

Front 6

Corporations

Back 6

A form of business organization recognized by law as a separate legal entity with all rights of an individual.

Front 7

Charter

Back 7

A government document that gives permission to create a corporation.

Front 8

Stock

Back 8

Ownership certificates, in the firm.

Front 9

Stockholders

Back 9

Own a part of the corporation. Money gained from sale of stock is used to set up the corporation.

Front 10

Dividend

Back 10

A check that transfers a portion of the corporate earnings--to each stockholder

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Common Stock

Back 11

Represents basic ownership of a corporation.

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Preferred Stock

Back 12

Represents nonvoting ownership shares of the corporation.

Front 13

Bond

Back 13

A written promise to repay the amount borrowed at a later date.

Front 14

Interest

Back 14

The price paid for the use of the lender's money.

Front 15

Limited Liability

Back 15

Corporation itself, not owners, is fully responsible for its debts and other obligations.

Front 16

Double Taxation

Back 16

Profits are taxed the first time when the corporation pays income taxes.

Front 17

Franchises

Back 17

A temporary business investment that involves renting or leasing another firm's successful business model.

Front 18

Franchiser

Back 18

Actual owner of the business that lets other investors rent or lease its name, business profile, and way of doing business.

Front 19

Franchisee

Back 19

Investor who rents or leases the business model from the franchiser and then hopes to recoup his or her investment by selling the franchiser's goods/services.

Front 20

Income Statement

Back 20

A report showing a business's sales, expenses, net income, and cash flows for a period of time, such as three months or a year.

Front 21

Net Income

Back 21

The funds left over after all of the firm's expenses including taxes, are subtracted from its sales.

Front 22

Depreciation

Back 22

A non cash charge the firm takes for the general wear and tear on its capital goods.

Front 23

Non cash Charge

Back 23

Money stays in the firm rather than being paid to employees, or payments may be made to allow the firm to treat depreciation two different ways.

Front 24

Cash Flow

Back 24

The sum of net income and non cash charges such as depreciation, is the bottom line, a more comprehensive measure of a firm's profits.

Front 25

Merger

Back 25

A combination of two or more businesses to form a single firm.

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Horizontal Merger

Back 26

Takes place when firms that produce the same kind of product join forces.

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Vertical Merger

Back 27

Companies involved in different stages of manufacturing, marketing, or sales join together.

Front 28

Conglomerate

Back 28

A firm that typically has at least four businesses, each making unrelated products, none of which are responsible for a majority of its sales.

Front 29

Multinationals

Back 29

A corporation that has manufacturing or service operations in a number of different countries.

Front 30

Incubators

Back 30

Places where potential entrepreneurs can get training in accounting, engineering, and managerial skills, along with potential financing, to give life to a business concept.

Front 31

Venture Capitalists

Back 31

A provider of investment funds to a new or unproven business in exchange for an equity ) ownership share/

Front 32

Angel Investors

Back 32

Like to fund the start-ups of family, friends, or others whose business ideas have potential, but could not otherwise obtain enough seed money.

Front 33

Crowdfunding

Back 33

The making of a direct-funding appeal to a "crowd" of possibly interested investors on a social networking platform.

Front 34

Cooperative (Co-op)

Back 34

A voluntary association that buys bulk amounts of goods such as food or clothing that can be sold to members at prices lower than those charged by regular businesses.

Front 35

Labor Unions

Back 35

An organization of workers formed to represent its members' interests in various employment matters.

Front 36

Collective Bargaining

Back 36

When it negotiates with management over issues such as pay, working hours, health-care coverage, vacations, and other job-related matters.

Front 37

Chamber of Commerce

Back 37

An organization that promotes the welfare of its member businesses.

Front 38

Better Business Bureau

Back 38

A nonprofit organization sponsored by local businesses. Provides general information on companies and maintains records of consumer inquiries and complaints.

Front 39

Craft Union (Trade Union)

Back 39

An association of skilled workers who perform same kind of work.

Front 40

Industrial Union

Back 40

An association of workers in the same industry, regardless of job each individual worker performs.

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Strike

Back 41

Refuse to work until certain demands were met.

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Picket

Back 42

Parade in front of employer's business carrying signs about the dispute.

Front 43

Boycott

Back 43

A mass refusal to buy products from targeted employers or companies.

Front 44

Lockout

Back 44

A refusal to let employees work until they agreed to management demands.

Front 45

Company Unions

Back 45

Unions organized, supported, or run by employers--to head off efforts by others to organize their workers.

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The American Federation of Labor (AFL)

Back 46

An organization of craft or trade unions.

Front 47

Independent Unions

Back 47

Unions that do not belong to either the AFL-CIO or to the Change to Win Coalition.

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Closed Shop

Back 48

An employer agrees to hire only union members.

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Union Shop

Back 49

Workers don't have to belong to the Union to be hired, but must join soon afterward and remain a member for as long as they keep their jobs.

Front 50

Modified Union Shop

Back 50

Workers don't have to belong to a union to be hired and cannot be made to join one to keep their jobs.

Front 51

Agency Shop

Back 51

A union agreement governed by a security agreement that doesn't required a worker to join a union as a condition to get or keep a job.

Front 52

Civilian Labor Force

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Men and women 16 years old and over who are either working or actively looking for a job.

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Wage Determination

Back 53

A standard amount of pay given for work performed.

Front 54

Equilibrium Wage Rate

Back 54

The wage rate that leaves neither a surplus nor a shortage in the labor market.

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Seniority

Back 55

The length of time a person has been on the job.

Front 56

Signaling Theory

Back 56

Employers are willing to pay more to people with certificates, degrees, and other indicators that "signal" superior knowledge or ability.

Front 57

Grievance Procedure

Back 57

A provision for resolving issues that may come up later.

Front 58

Mediation

Back 58

The process of bringing in a neutral third person or persons to help settle a dispute.

Front 59

Arbitration

Back 59

A process in which both sides agree to place their difference before a third party whose decision will be accepted as final.

Front 60

Fact-Finding

Back 60

An agreement between union and management to have a neutral third party collect facts about a dispute and present nonbinding recommendations.

Front 61

Injunction (Seizure)

Back 61

A court order instructing one side to act, or not act.

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Seizure

Back 62

A temporary takeover of operations--while government negotiates with the union.

Front 63

Giveback

Back 63

A wage, fringe benefit, or work rule given up when a labor contract is renegotiated.

Front 64

Glass Ceiling

Back 64

An invisible barrier that obstructs their advancement up the corporate ladder.

Front 65

Legal Remedies

Back 65

Two federal laws designed to fight wage and salary discrimination.

Front 66

Set-aside Contract

Back 66

A guaranteed contract reserved for a targeted group.

Front 67

Market Remedies

Back 67

To overcome unfair hiring practices is by reserving some market activity for minority groups.

Front 68

Minimum Wage

Back 68

Lowest wage that can be paid by law to most workers.

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Current Dollars

Back 69

Dollars not adjusted for inflation, from 1939 to 2013.

Front 70

Real or Constant Dollars

Back 70

Dollars that are adjusted in a way that removes distortion of inflation.

Front 71

Base Year

Back 71

A year that serves as a comparison for all other years.