business and labor

Corporations represent this percentage of businesses in the U.S. but account for only this percentage of sales.

20% of all businesses in U.S. but 89% of all sales

This is the current unemployment rate in the U.S. (Sept. 2015).

5.1%

Sole proprietorship's represent this percentage of businesses in the U.S. but account for only this percentage of sales.

73% of all businesses in U.S. but only 5% all sales

How does the legal identity of a corporation differ from a sole proprietorship.

Legally, a sole proprietorship is identified with its owner. (i.e. When a person sues a sole proprietorship, they sue the owner.) A corporation has a separate legal identity from its owners. As a separate entity, it has powers and rights that are recognized by law. (i.e. You can sue the corporation, not the stockholders.)

This type of hybrid business organization can be described as a corporation which has the financial benefit of single taxation (no corporate income tax). These corporations can have no more than 100 shareholders, all of whom must be U.S. citizens.

S corporation

These are some of the main labor trends in America.

Shifting away from being a manufacturing economy and toward being a service economy Increasing international competition Workers need more human capital (education, training) More women are at work More businesses are hiring temporary workers who are not given benefits

This is how the pay gap between men and women has changed over the last few decades.

The gap has narrowed but still exists.

Unlimited liability means this.

The owners are responsible for all debts and obligations amassed by the business, including lawsuit judgments.

In general, this is how the hourly pay of unionized workers' compares to the hourly pay of nonunionized workers' who do the same job.

Union members earn an average of about $5 more per hour.

These are the four skill levels of labor.

Unskilled labor (few minutes of training required, e.g. dishwasher, fruit and vegetable picker) Semi-skilled labor (few days of training required, e.g. cashier, lifeguard, low-level construction worker) Skilled labor (few months or years of training required but not four-years plus of college, e.g. mechanic, chef, firefighter, carpenter) Professional labor (advanced skills and training, typically four-years plus of college education, e.g. doctors, computer programmers, engineers)

This percentage of the American labor force are members of labor unions.

about 11%

The U.S. labor force is made up of this many people.

about 150 million people (about half the U.S. population)

This is the normal unemployment rate in the U.S.

about 5%

This term refers to the act of union representatives and company representatives meeting and negotiating a labor contract.

collective bargaining

These kinds of jobs are growing in the America.

computer jobs health-care jobs financial-service jobs

A payment of a portion of the corporation's profits to a stockholder is called this.

dividend

These are the advantages of the sole proprietorship.

easier to start fewer regulations owner has full control owner is the sole receiver of profit single taxation

These are the advantages of the partnership.

easier to start shared decision making and specialization larger pool of capital single taxation

These are four synonyms of the term business organization.

firm company enterprise business

Compensation other than salary or wages is called this.

fringe benefits

These types of people are not counted as unemployed and are not part of the labor force.

full-time housewives full-time students retired seniors who don't want to work "discouraged workers" (unemployed people that were looking for work but have given up)

These are the disadvantages of the partnership.

general partners have unlimited liability potential for conflict

These are the two types of partnerships.

general partnership (All partners are general partners and thus have equal control of the business and equal unlimited liability.) limited partnership (The general partner controls the business and has unlimited liability. The limited partners contribute money, do none of the work, take a share of the profits, and have limited liability.)

This term refers to the "barrier" of hiring and promotion discrimination against women that is perhaps most common in corporations.

glass ceiling

These are the main reasons why labor unions have been in decline in America since the 1960s.

globalization and international competition (Many businesses have shifted union jobs overseas to cut costs.) some unions abused their power (connections with communism, Jimmy Hoffa, resisting modernization) government has restrained unions' power ("Right to Work" laws which ban established unions from requiring union membership and payment of union dues)

The merger of Exxon and Mobil in 1999 is an example of this type of corporate merger in which two or more firms in same industry and in the same stage of production join together.

horizontal merger

These are some examples of fringe benefits.

insurance (medical, dental, life) paid vacation paid sick days retirement plan discounts on goods + services expense

This group is made up of people who are at least 16 years old and who are employed or unemployed.

labor force

This is an organization of workers that tries to improve its members' working conditions, wages, and benefits.

labor union

This type of hybrid business organization can be described as a sole proprietorship or partnership that has the legal benefit of limited liability.

limited liability company (LLC)

These are the advantages of the corporation.

limited liability for the owners transferable ownership (buying + selling stock) typically have the ability to acquire expensive resources (e.g. costly physical capital and highly skilled labor)

These kinds of jobs have been declining (outsourced) in America during the last few decades.

low-skilled factory jobs (e.g. garment workers) low-skilled service jobs (e.g. customer-service representatives)

When this occurs two or more companies combine into an entirely new firm.

merger

These are the disadvantages of the corporation.

more difficult, expensive to start double taxation (corporate income tax + taxes on dividends) potential loss of control by founders more regulations

This term refers to a large corporation that produces and sells its goods and services throughout the world. The Toyota Motor Corporation is an example of this type of firm.

multinational

Goodwill Industries and the NRA are examples of this type of business organization which uses its surplus funds to achieve goals rather than distributing them as profit.

nonprofit organization

This type of business organization is owned and managed by two or more persons who agree on a specific division of responsibilities and profits.

partnership

Business managers, architects, bankers, teachers, lawyers, and many professional actors and athletes are examples of workers of this skill level.

professional labor

Typically, a business franchisee like the local McDonald's restaurant in Ponderay must pay a portion of its earnings to its franchisor, the McDonald's Corporation. These payments are called these.

royalty

Word processors, short-order cooks, and bank tellers who have a small amount of specialized skill and training are examples of workers of this skill level.

semi-skilled labor

A certificate of ownership in a corporation is called this.

share of stock

This is how a corporation is governed.

shareholders elect ⇩ the board of directors who hire ⇩ corporate officers (e.g. CEO) who hire ⇩ managers and employees

Plumbers, emergency medical technicians, and copy-machine repairmen are examples of workers of this skill level.

skilled labor

This type of business organization is owned and managed by a single individual.

sole proprietorship

These are the main factors that affect what workers earn.

supply and demand for their labor workers' skill level wage discrimination minimum wage laws unions

These are two main reasons why firms incorporate (become corporations).

the owners (stockholders) get limited liability the owners can raise financial capital (money) and expand their business by selling a large portion of their stock

People 16 years or older who don't have a job but are actively seeking one are classified as this.

unemployed

These are the disadvantages of the sole proprietorship.

unlimited liability lack of permanence and more difficult to transfer ownership typically has a limited ability to acquire expensive resources (especially costly physical capital and highly skilled labor)

Messengers, hostesses, and janitors with no specialized skills and training are examples of workers of this skill level.

unskilled labor

The merger of Warner Brothers (a film production company) and Regal Entertainment Group (a movie theater chain) would be an example of this type of corporate merger in which a company joins with a supplier or customer company.

vertical merger

This is an establishment formed to provide goods and services to consumers.

a business organization

This type of business organization pays fees to a larger company in return for the right to sell a certain product or service. The local Domino's Pizza store in Sandpoint is an example of this type of firm.

business franchise

This term refers to a corporation comprised of several different independent businesses that fall under one corporate group, usually involving a parent company and many subsidiaries. Berkshire Hathaway Inc. is an example of this type of firm. Berkshire Hathaway (parent company) was originally a textile manufacturing company, but since the 1960s it has acquired a controlling stake in many unrelated corporations (subsidiaries), such as GEICO (insurance), BNSF (railroad), Dairy Queen, Fruit of the Loom, and the Kraft Heinz Company.

conglomerate

Horizon Credit Union is an example of this type of business organization which is owned and operated by a group of individuals for their shared benefit.

cooperative

This type of business organization is owned by individual stockholders.

corporation