Splash Screen

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Splash Screen
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Chapter Menu
Chapter Introduction Section 1 Types of
Businesses Section 2 The American Labor
Force Section 3 Businesses in Our Economy Visual
Summary
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Chapter Intro 1
Businesses and labor organizations play a major
role in our nation and communities. They work
separately, as well as together, to make peoples
lives better by keeping the economy as healthy as
possible.
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Chapter Intro 2
Section 1 Types of Businesses Market economies
rest upon the fundamental principle of individual
freedom for consumers, producers, and workers.
The three basic types of business organizations
in the United States are sole proprietorship,
partnership, and corporation.
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Chapter Intro 2
Section 2 The American Labor Force Market
economies rest upon the fundamental principle of
individual freedom for consumers, producers, and
workers. Labor unions represent about 14 percent
of U.S. workers and play an important role in the
nations economy and political life. They
negotiate wages and workplace agreements with
management.
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Chapter Intro 2
Section 3 Businesses in Our Economy Market
economies rest upon the fundamental principle of
individual freedom for consumers, producers, and
workers. Businesses play many different roles in
our economy, including that of consumer,
employer, and producer. Businesses also have
responsibilities to their consumers, owners,
employees, and communities.
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Chapter Preview-End
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Section 1-Main Idea
Guide to Reading
Big Idea Market economies rest upon the
fundamental principle of individual freedom for
consumers, producers, and workers.
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Section 1-Key Terms
Guide to Reading
Content Vocabulary

• sole proprietorship
• financial capital
• partnership
• articles of partnership
• corporation

• charter
• stock
• stockholder
• board of directors
• cooperative

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Section 1-Key Terms
Guide to Reading
Academic Vocabulary

• sole
• consult
• clarify

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Section 1-Polling Question
Should businesses enjoy all the same freedoms
that private citizens do? A. Yes B. No

1. A
2. B

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Section 1
Proprietorships
The most common, and simplest, form of business
organization in the United States is the sole
proprietorship.
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Section 1
Proprietorships (cont.)

• Sole proprietorships are the simplest and most
  common form of American business.

• Advantages

• Easy to start
• Quick decisions without the need to consult a
  boss or partner
• No corporate taxes

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Section 1
Proprietorships (cont.)

• Disadvantages

• Unlimited liability
• Difficult to raise financial capital
• Difficult to find good employees

Forms of Business Organization
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Section 1
Do you think it would be easy and fun to run your
own business? A. Yes B. No

1. A
2. B

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Section 1
Partnerships
A partnership is a business owned by two or more
people.
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Section 1
Partnerships (cont.)

• A partnership is a business run jointly by two or
  more owners.

• Articles of partnership used to clarify business
  setup

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Section 1
Partnerships (cont.)

• Advantages

• Easier to raise money
• Add partners if needed
• No corporate taxes
• Partners bring unique talents

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Section 1
Partnerships (cont.)

• Disadvantages

• Complex legal structure
• Unlimited liability

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Section 1
Do you think partners should be financially
responsible if a customer is injured while being
careless at their business? A. Yes B. No

1. A
2. B

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Section 1
Corporations
The corporation is a business recognized by law
and is the most complicated of the three main
types of businesses.
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Section 1
Corporations (cont.)

• A corporation has many of the rights and
  responsibilities as an individual.

• One-fifth of all businesses
• Need a charter to establish
• Can sell stock

Corporate Chain of Command
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Section 1
Corporations (cont.)

• Stockholders elect board of directors.

• Managers actually run business

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Section 1
Corporations (cont.)

• Advantages

• Easy to raise funds
• Can grow to be huge
• Can hire professional managers
• Limited liability

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Section 1
Corporations (cont.)

• Disadvantages

• Expensive to start
• Owners have little control
• More government regulation
• Double taxation

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Section 1
Corporations (cont.)

• Some organizations are nonprofit

• Churches
• Hospitals
• Social services
• Cooperatives or voluntary associations

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Section 1
Which business do you think would best be set up
as a corporation? A. Beauty parlor B. Doctors
office C. Sandwich shop D. Skating rink

1. A
2. B
3. C
4. D

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Section 1-End
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Section 2-Main Idea
Guide to Reading
Big Idea Market economies rest upon the
fundamental principle of individual freedom for
consumers, producers, and workers.
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Section 2-Key Terms
Guide to Reading
Content Vocabulary

• labor union
• right-to-work law
• collective bargaining

• mediation
• arbitration
• strike
• boycott

Academic Vocabulary

• comprise
• technique

• option

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Section 2-Polling Question
Are labor unions good for American business?
A. Yes B. No

1. A
2. B

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Section 2
Organized Labor
Labor unions play an important role in the
nations economy and political life.
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Section 2
Organized Labor (cont.)

• Labor unions help workers obtain better pay and
  working conditions.

• Only 14 of U.S. workers are in unions.

Right-to-Work States
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Section 2
Organized Labor (cont.)

• Two types of unions

• Craft or trade unions
• Industrial unions

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Section 2
Organized Labor (cont.)

• Different levels of union organization

• Local union
• National union
• Federation American Federation of
  Labor-Congress of Industrial Organizations
  (AFL-CIO)

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Section 2
Organized Labor (cont.)

• Union arrangements

• Closed shops now illegal, but once common
• Union shops require employees to join union after
  being hired
• Modified union shop gives hirees a choice

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Section 2
Organized Labor (cont.)

• Twenty-two states have right-to-work laws

• National Labor Relations Board (NLRB) regulates

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Section 2
If you were hired by a business that had a
modified union shop, would you join the union?
A. Yes B. No C. Probably D. Probably not

1. A
2. B
3. C
4. D

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Section 2
Negotiations
Labor and management negotiate workplace
agreements.
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Section 2
Negotiations (cont.)

• Unions engage in collective bargaining for their
  members.

• Negotiations focus on

• Wages
• Health care
• Holidays
• Working conditions
• Procedures for changing rules

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Section 2
Negotiations (cont.)

• Options for coming to agreement

• Mediation
• Arbitration

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Section 2
Negotiations (cont.)

• Labor tools

• Strike so business has to shut down or give in
• Encourage public to boycott until business changes

Labor Union Trends
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Section 2
Negotiations (cont.)

• Management tools

• Lockout workers until they accept new contract

• Government may step in under extreme
  circumstances.
• Public employees may also join labor unions.

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Section 2
Which seems like the most effective method for a
business and a union to come to an agreement?
A. Strike B. Lockout C. Mediation D. Arbitration

1. A
2. B
3. C
4. D

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Section 2-End
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Section 3-Main Idea
Guide to Reading
Big Idea Market economies rest upon the
fundamental principle of individual freedom for
consumers, producers, and workers.
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Section 3-Key Terms
Guide to Reading
Content Vocabulary

• transparency
• discrimination

• social responsibility

Academic Vocabulary

• foundation
• crucial
• reveal

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Section 3-Polling Question
What is a business first responsibility to?
A. its owners B. its employees C. the
community D. its customers

1. A
2. B
3. C
4. D

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Section 3
Roles of Business
Businesses play many different roles in our
economy. Businesses also have many
responsibilities.
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Section 3
Roles of Business (cont.)

• Businesses do more than produce goods or services.

• Other roles in economy

• Consumer
• Employer
• Donor, often through foundation

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Section 3
Do you know of any companies in your city that do
community service? A. Yes B. No

1. A
2. B

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Section 3
Responsibilities
Businesses have responsibilities to their
consumers, owners, employees, and communities.
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Section 3
Responsibilities (cont.)

• Responsibilities to consumers

• Safety
• Honesty
• Fairness
• Government enforces

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Section 3
Responsibilities (cont.)

• Responsibilities to owners

• Transparency or full financial disclosure

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Section 3
Responsibilities (cont.)

• Responsibilities to employees

• Safety
• No discrimination

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Section 3
Responsibilities (cont.)

• Responsibility to community

• Social responsibility, such as gifts to charity
• Volunteer programs
• Support education
• Disaster relief
• Public environmental awareness

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Section 3
Do you agree that businesses should have social
responsibility? A. Agree B. Disagree

1. A
2. B

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Section 3-End
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VS 1
Business

• Sole proprietorships are small, easy-to-manage
  enterprises owned by one person.
• Proprietorships are relatively numerous and
  profitable.
• Disadvantages include raising financial capital
  and attracting qualified employees.
• Partnerships are owned by two or more persons.
• Corporations are owned by shareholders.

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VS 2
Business

• One of the major advantages of a corporation is
  limited liability.
• A major disadvantage of corporations is that they
  are taxed more heavily than other forms of
  business organizations.

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VS 3
Responsibilities

• Businesses have a responsibility to provide safe,
  working products to their customers.
• Businesses have an obligation to pursue goals
  that benefit society as a whole as well as
  themselves.

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VS 4
Labor

• For much of its history, organized labor in the
  United States has been split into two groups
  craft unions and industrial unions

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VS 5
Labor

• Organized labor operates at three levels

• local union
• national union
• federation

• The closed shop (now illegal) required that
  employers hire only union members.

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VS 6
Collective Bargaining

• Collective bargaining is the process by which
  unions and employers negotiate the conditions of
  employment.
• When collective bargaining fails, several other
  methods are available to settle labor disputes.

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VS-End
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Figure 1
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Figure 2
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Figure 3
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Figure 4
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TIME Trans
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DFS Trans 1
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DFS Trans 2
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DFS Trans 3
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Vocab1
sole proprietorship a business owned and
operated by a single person
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Vocab2
financial capital money used to buy the tools
and equipment used in production
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Vocab3
partnership a business owned by two or more
people
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Vocab4
articles of partnership formal legal papers
specifying the arrangement between partners
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Vocab5
corporation type of business organization owned
by many people but treated by law as though it
were a person
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Vocab6
charter a written document granting land and the
authority to set up colonial governments or a
government document granting permission to
organize a corporation
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Vocab7
stock ownership share of a corporation
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Vocab8
stockholder an individual who has invested in a
corporation and owns some of its stock
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Vocab9
board of directors people elected by the
shareholders of a corporation to act on their
behalf
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Vocab10
cooperative a voluntary association of people
formed to carry on some kind of economic activity
that will benefit its members
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Vocab11
sole being the only one
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Vocab12
consult to seek information or advice from a
person or resource
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Vocab13
clarify to make something more understandable
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Vocab14
labor union association of workers organized to
improve wages and working conditions
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Vocab15
right-to-work laws state laws forbidding unions
from forcing workers to join
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Vocab16
collective bargaining process by which unions
and employers negotiate the conditions of
employment
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Vocab17
mediation situation in which union and company
officials bring in a third party to try to help
them reach an agreement
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Vocab18
arbitration situation in which union and company
officials submit the issues they cannot agree on
to a third party for a final decision
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Vocab19
strike when workers deliberately stop working in
order to force an employer to give in to their
demands
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Vocab20
boycott the refusal to purchase certain goods
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Vocab21
comprise to consist or be made up of
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Vocab22
technique procedures or methods by which
something is done
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Vocab23
option an alternative or choice
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Vocab24
transparency process of making business deals
more visible to everyone
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Vocab25
discrimination unfair treatment based on
prejudice against a certain group
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Vocab26
social responsibility the obligation a business
has to pursue goals that benefit society as well
as themselves
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Vocab27
foundation the basis or groundwork of a
structure or idea an organization
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Vocab28
crucial of vital importance
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Vocab29
reveal to make known or show plainly
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