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Splash Screen

Splash Screen

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Splash Screen

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  1. Splash Screen

  2. Chapter Introduction Section 1Types of Businesses Section 2Labor Unions Section 3Businesses in Our Economy Review to Learn Chapter Assessment Contents Click on a hyperlink to view the corresponding slides.

  3. Chapter Overview Chapter Intro 1 In Chapter 22 you learn about business and labor. Section 1 describes different types of business organization. Section 2 discusses unions and management. Section 3 focuses on the roles and responsibilities of businesses.

  4. Chapter Objectives Chapter Intro 2 After studying this chapter, you will be able to: • Identify the advantages and disadvantages of each type of business organization. • Explain how labor unions and management conduct negotiations. • Describe the responsibilities of businesses. Click the mouse button or press the Space Bar to display the information.

  5. Chapter Intro 3 Click the Speaker button to replay the audio.

  6. End of Intro Click the mouse button to return to the Contents slide.

  7. Guide to Reading Main Idea Section 1-1 Sole proprietorships, partnerships, and corporations are the three common forms of business organizations. Key Terms • sole proprietorship • stock • stockholder • board of directors • limited liability • double taxation • cooperative • unlimited liability • financial capital • partnership • articles of partnership • corporation • charter Click the mouse button or press theSpace Bar to display the information.

  8. Guide to Reading (cont.) Reading Strategy Section 1-2 Classifying Information As you read the section, complete a diagram like the one on page 480 of your textbook by identifying at least two real-life examples in each of the categories. Read to Learn • What are the different ways in which businesses are organized? • What are the advantages and disadvantages of each type of business organization? Click the mouse button or press theSpace Bar to display the information.

  9. A small restaurant in New Orleans Section 1-3 Click the Speaker button to replay the audio.

  10. Proprietorships Section 1-4 • The most common form of business organization in the United States is the sole proprietorship, or proprietorship–a business owned and operated by one person. • A proprietorship is the easiest form of business to set up. • Anyone can start a proprietorship whenever they want to. • Sole proprietors fully own the business and receive all the profits. • They can make decisions quickly, without having to consult others. (pages 480–481) Click the mouse button or press theSpace Bar to display the information.

  11. Proprietorships (cont.) Section 1-5 • However, the owner has unlimitedliability–the owner is financially responsible for all debts of the business. • The owner’s personal assets may be seized to pay the debts. • Sole proprietors have trouble raising financialcapital–the money needed to help the business grow. • Most use their own savings or borrow from friends and family. (pages 480–481) Click the mouse button or press theSpace Bar to display the information.

  12. Proprietorships (cont.) Section 1-6 • Sole proprietors may also have trouble attracting qualified employees because they may not be able to offer the same salaries and benefits that larger firms offer. (pages 480–481)

  13. Proprietorships (cont.) Section 1-7 If a sole proprietorship fails, how are the debts of the business paid? Explain. Because sole proprietors have unlimited liability, they are financially responsible for all debts of the business. Their personal property can be seized to pay the debts if the business fails. (pages 480–481) Click the mouse button or press theSpace Bar to display the answer.

  14. Partnerships Section 1-8 • A partnership is a business owned by two or more people. • The articles of partnership is the legal agreement among partners that starts the business. • It identifies how much money each will contribute, how they will share profits, and what role each will play. • It describes how to add or remove partners and how to break up the business if they want to close it. (pages 481–482) Click the mouse button or press theSpace Bar to display the information.

  15. Partnerships (cont.) Section 1-9 • Partnerships can raise money more easily by borrowing or adding new partners. • Like proprietors, partners pay no corporate income tax. • Partners bring a range of talents to the business. • Partners have unlimited liability. • Each is fully responsible for all business debts. (pages 481–482) Click the mouse button or press theSpace Bar to display the information.

  16. Partnerships (cont.) Section 1-10 How would a business benefit from having partners with different talents? Each owner can then oversee the part of the business that needs his or her particular talent. This helps the business succeed. (pages 481–482) Click the mouse button or press theSpace Bar to display the answer.

  17. Corporations Section 1-11 • Acorporationisabusinessthathasmanyof therightsandresponsibilitiesofindividuals. • It can own property, sue, and be sued. • It must pay taxes, but cannot vote. • A corporation starts with a charter–a government document granting permission to organize. • It describes the business and specifies the amount of stock, or ownership shares of the corporation, that will be issued. • The stockholders who buy the shares own the business. (pages 482–485) Click the mouse button or press theSpace Bar to display the information.

  18. Corporations (cont.) Section 1-12 • Stockholders elect a board of directors, which hires managers to run the business. • A corporation’s owners and managers are different groups of people. • Corporations can raise money by selling new shares of stock. • They can also borrow more easily than can proprietorships or partnerships. • The ease of raising capital enables them to grow very large. (pages 482–485) Click the mouse button or press theSpace Bar to display the information.

  19. Corporations (cont.) Section 1-13 • Professional managers run corporations. • If the managers do not succeed, the board can replace them. • Ownership can be easily transferred by simply buying and selling stock. • Corporations have limited liability. • Only the corporation, not its owners, are responsible for the debts of the business. • Individual stockholders can lose no more than the amount of their investment. (pages 482–485) Click the mouse button or press theSpace Bar to display the information.

  20. Corporations (cont.) Section 1-14 • Corporations are often expensive and complex to set up. • Owners have little say in the management of the corporation. • Corporations are subject to more government regulation than other forms of business. • They must release detailed financial reports regularly to keep stockholders informed. (pages 482–485) Click the mouse button or press theSpace Bar to display the information.

  21. Corporations (cont.) Section 1-15 • Stockholders are subject to double taxation. • First the corporation pays a tax on its profits. • Then stockholders must pay income tax on the profits distributed to them. • A nonprofit organization, such as a church or social service agency, operates in a businesslike way to promote the interests of its members. (pages 482–485) Click the mouse button or press theSpace Bar to display the information.

  22. Corporations (cont.) Section 1-16 • A cooperative is a voluntary association formed to carry out some kind of economic activity to benefit its members. • A consumer cooperative buys goods in bulk for its members. • A producer cooperative helps members promote or sell their products. (pages 482–485) Click the mouse button or press theSpace Bar to display the information.

  23. Corporations (cont.) Section 1-17 How are owners of a corporation taxed differently from owners of proprietorships or partnerships? Owners of corporations are subject to double taxation. First the corporation pays tax on its profits. Then stockholders pay tax on the profits distributed to them. Sole proprietors and partners pay taxes on their profits, but their businesses do not pay a separate profit tax. (pages 482–485) Click the mouse button or press theSpace Bar to display the answer.

  24. Checking for Understanding Section 1-18 Define Match the terms on the right with their definitions on the left. A __ 1. a business owned and operated by a single person __ 2. a business owned by two or more people __ 3. organization owned by many people but treated by law as though it were a person A. sole proprietorship B. partnership C. corporation B C Click the mouse button or press theSpace Bar to display the answers.

  25. Checking for Understanding(cont.) Section 1-19 Describe What are the advantages of a partnership over a sole proprietorship? What are the advantages of a sole proprietorship over a partnership? Partnerships can usually raise more money, and each partner brings special talents to the business. In a sole proprietorship, a single owner makes all decisions and keeps all the profits. Click the mouse button or press theSpace Bar to display the answer.

  26. Checking for Understanding(cont.) Section 1-20 Compare Name three kinds of cooperatives and describe what they do for their members. Consumer cooperatives buy bulk amounts of goods for members. Service cooperatives provide services such as insurance and credit to their members. Producer cooperatives promote or sell members’ products. Click the mouse button or press theSpace Bar to display the answer.

  27. Critical Thinking Section 1-21 Making Comparisons If you were planning to open your own business, which form of business organization would you prefer–sole proprietorship, partnership, or corporation? Justify your answer. Possible answer: A partnership is preferable because the partners share the responsibilities of the business. Click the mouse button or press theSpace Bar to display the answer.

  28. Analyzing Visuals Section 1-22 Interpret Study the circle graphs on page 481 of your textbook. Is any single form of business organization responsible for more than one-half of the nation’s sales? What percentage of businesses are partnerships? Corporations are responsible for 86 percent of the sales. Eight percent of businesses are partnerships. Click the mouse button or press theSpace Bar to display the answer.

  29. Close Section 1-23 Which type of business organization do you think is most important to the American economy? Explain.

  30. End of Section 1 Click the mouse button to return to the Contents slide.

  31. Guide to Reading Main Idea Section 2-1 A labor union is an organization that seeks to increase the wages and improve the working conditions of its members. Key Terms • labor union • collective bargaining • mediation • arbitration • strike • lockout • closed shop • union shop • right-to-work laws • modified union shop Click the mouse button or press theSpace Bar to display the information.

  32. Guide to Reading (cont.) Reading Strategy Section 2-2 Organizing Information As you read the section, complete a diagram like the one on page 486 of your textbook by identifying three kinds of union arrangements. Read to Learn • What are the different types of unions? • How are negotiations between unions and management conducted? Click the mouse button or press theSpace Bar to display the information.

  33. Union workers Section 2-3 Click the Speaker button to replay the audio.

  34. Organized Labor Section 2-4 • Labor unions are groups of workers who band together to have a better chance to obtain higher pay and better working conditions. • Workers who perform the same skills join a craft or trade union. • Industrial unions bring together workers who belong to the same industry. • Organized labor has three levels: local, national or international, and the federation. (pages 486–488) Click the mouse button or press theSpace Bar to display the information.

  35. Organized Labor (cont.) Section 2-5 • A local union is made up of workers in a factory, company, or geographic area. • It negotiates a contract with a company and monitors the contract’s terms. (pages 486–488) Click the mouse button or press theSpace Bar to display the information.

  36. Organized Labor (cont.) Section 2-6 • National unions are the individual craft or industrial unions that represent local unions nationwide. • Those with members in Canada or Mexico are international unions. • National unions help employees set up local unions and negotiate contracts. • In certain industries, the national union negotiates the contracts for the entire industry. (pages 486–488) Click the mouse button or press theSpace Bar to display the information.

  37. Organized Labor (cont.) Section 2-7 • At the federation level is the AFL-CIO. • It represents 13 million workers nationwide. • In the past some unions supported the closed shop. • A worker would have to belong to the union to be hired. • The Taft-Hartley Act of 1947 banned most closed shops. (pages 486–488) Click the mouse button or press theSpace Bar to display the information.

  38. Organized Labor (cont.) Section 2-8 • The union shop is more common. • Companies can hire nonunion workers, but the workers must join the union once they begin work. • One part of the Taft-Hartley Act allows state governments to ban union shops. • Twenty-two states have passed right-to-work laws, which prevent unions from forcing workers to join. (pages 486–488) Click the mouse button or press theSpace Bar to display the information.

  39. Organized Labor (cont.) Section 2-9 • Workers in a modified union shop do not have to join the union. • If they choose to join, they must stay in the union as long as they work for that employer. • A majority of workers must vote in favor of a union before one can be formed. • The National Labor Relations Board makes sure union votes are carried out honestly. (pages 486–488) Click the mouse button or press theSpace Bar to display the information.

  40. Organized Labor (cont.) Section 2-10 What kind of union is the United Automobile Workers? Explain. The UAW is a national industrial union. It brings together different types of workers who all belong to the automobile industry. It negotiates contracts for the entire industry nationwide. (pages 486–488) Click the mouse button or press theSpace Bar to display the answer.

  41. Negotiations Section 2-11 • Under collective bargaining, union and company representatives meet to discuss the terms of the workers’ new contract when the old one nears its end. • Negotiations focus on wages, benefits, work hours, and work rules. (pages 488–489) Click the mouse button or press theSpace Bar to display the information.

  42. Negotiations (cont.) Section 2-12 • If the two sides cannot agree on terms, they might try mediation, in which a third party tries to help them reach an agreement. • In some cases, they choose arbitration. • A third party listens to both sides and decides on a settlement. • Both parties agree in advance to accept the arbitrator’s decision. (pages 488–489) Click the mouse button or press theSpace Bar to display the information.

  43. Negotiations (cont.) Section 2-13 • To pressure management to accept their position, workers can call a strike, in which all workers in the union refuse to work. • Strikers often picket the business, marching in front of company buildings while holding signs. • If striking doesn’t work, unions can encourage people to boycott, or refuse to buy, the company’s products. (pages 488–489) Click the mouse button or press theSpace Bar to display the information.

  44. Negotiations (cont.) Section 2-14 • Management can stage a lockout, in which the company blocks workers from entering. • Management hopes lost wages will pressure workers to accept its terms. (pages 488–489) Click the mouse button or press theSpace Bar to display the information.

  45. Negotiations (cont.) Section 2-15 How is mediation different from arbitration? In mediation, the mediator tries to help labor and management reach a compromise. In arbitration, the arbitrator actually decides how to settle the disagreement, and both parties agree in advance to accept whatever the arbitrator decides. (pages 488–489) Click the mouse button or press theSpace Bar to display the answer.

  46. Checking for Understanding Section 2-16 Define Match the terms on the right with their definitions on the left. C __ 1. situation that occurs when management prevents workers from returning to work until they agree to a new contract __ 2. situation in which union and company officials bring in a third party to try to help them reach an agreement __ 3. company in which only union members can be hired A. closed shop B. mediation C. lockout B A Click the mouse button or press theSpace Bar to display the answers.

  47. Checking for Understanding(cont.) Section 2-17 Identify What are the two kinds of labor unions? The two kinds of labor unions are craft unions and industrial unions. Click the mouse button or press theSpace Bar to display the answer.

  48. Checking for Understanding(cont.) Section 2-18 Identify What is the process through which unions and management negotiate contracts called? The process is called collective bargaining. Click the mouse button or press theSpace Bar to display the answer.

  49. Critical Thinking Section 2-19 Summarizing Information How does a right-to-work law protect independent workers? Workers cannot be required to join a union. Click the mouse button or press theSpace Bar to display the answer.

  50. Analyzing Visuals Section 2-20 Identify Study the map on page 487 of your textbook. Does North Carolina have a right-to-work law in place? Does Colorado? North Carolina has a right-to-work law in place. Colorado does not. Click the mouse button or press theSpace Bar to display the answer.