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Chap. 22

TermDefinition
Sole Proprietorship A business owned and operated by a single person
Financial Capital Money used to buy the tools and equipment used in production
Partnership A business owned by two or more people
Articles of Partnership Formal legal papers specifying the arrangement between partners
Corporation A type of business organization owned by many people but treated by law as though it were a person
Charter A government document granting permission to organize a corporation
Stock An ownership share of a corporation
Stockholder An individual who has invested in a corporation and owns some of its stock
Board of Directors People elected by the shareholders of a corporation to act on their behalf
Cooperative A voluntary association of people formed to carry on some kind of economic activity that will benefit its members
Labor Union An association of workers organized to improve wages and working conditions
Right-to-Work Law State laws forbidding unions from forcing workers to join
Collective Bargaining A process in which unions and employers negotiate the conditions of employment
Mediation A situation in which union and company officials bring in a third party to try to help them reach an agreement
Arbitration A situation in which union and company officials submit the issues they cannot agree on to a third party for a final decision
Strike When workers deliberately stop working in order to force an employer to give in their demands
Boycott The refusal to purchase certain goods
Transparency A process of making business deals more visible to everyone
Discrimination The unfair treatment based on prejudice against a certain group
Social Responsibility The obligation a business has to pursue goals that benefit society as well as themselves
Created by: abdieldeleon
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