Test Review

CHAPTER 8 & 9

If a person wanted to open up a shoe store in Richmond, what would be the first step?

Acquire funds $$$$$$$$$$$$$$

$$$$$

Sole proprietorships are businesses owned by how many people?

One owner

What is a disadvantage of a sole proprietorship?

Limited funds

Partnerships are owned by how many people?

Multiple owners/ two or more

Which of these is an example of a partnership?

-Nintendo -Smith Medical Practice -Willis Brothers Construction -Olive Garden

Willis Brothers Construction

What type of partnership is it where partners share responsibility, including debts and loans?

General partnership

If a partner is not involved in the day to day operations of the business what type of partnership is it?

Limited partnership

What is an advantage of a partnership?

Access to resources

What is a disadvantage of a partnership?

Unlimited liability

Who owns corporations?

stockholders

Corporations that offer stock for sale that can be bought or sold freely are called what?

Public company

Corporations that retain rights over who can buy their stock are called what?

Private corporations

Why did Phillip Morris (tobacco company) purchase Kraft Foods?

To gain a new company identity

What type of merger is it when companies like Adidas and Reebok merge together?

Horizontal merger

The fact that Walt Disney has many different business interests make is a ___________ ?

conglomerate

Burger King is an example of a ____________.

franchise

Which of the following occupations would earn the least?

-plumber

-construction worker

-housekeeper

-lawyer

housekeeper

Which of the following is a “professional”?

-sanitation worker -electrician -housekeeper -lawyer

lawyer

How has the US government affected wages of workers?

By establishing a minimum wage

Which occupation category would a farmer or fisherman fall under?

Primary sector

Which occupation category would a insurance salesperson or accountant fall under?

Tertiary sector

Which occupation category would a factory worker or welder fall under?

Secondary sector

When a US company moves its factory to a foreign county it is called _____________.

outsourcing

Labor unions are responsible for what benefits for workers?

8 hr work day Vacations Sick leave 5 day work week

What was the 1st major labor union in the US?

American Federation of Labor

When can employers only hire union members?

Closed shop

When hired workers have to join the union within a given time period after being hired

Union shop

This law makes it illegal for workers to be forced to join a union.

Right-to-work laws

This is when employers and workers attempt to negotiate wages and working conditions.

Collective bargaining

This is when a neutral 3rd party make a decision when employers and workers cannot reach an agreement.

Binding arbitration