1. Types of Businesses Chapter 22 Section 1 The American Labor Force Chapter 22 Section 2 Businesses in Our Economy Chapter 22 Section 3

2.  Sole Proprietorship  Owned and operated by a single person  Disadvantages – hard to raise financial capital

3.  General Partnership  One in which all partners are responsible for the financial and management  Limited Partnership  At least one partner is not active in the daily running of the business

4. ADVANTAGES  Raise more money  Each owner brings special talents DISADVANTAGES  When a partner is added a new legal agreement has to be made  Unlimited liability – each owner is fully responsible for all debts  If you are sued and your partner cannot pay they you must pay

5.  Charter  Government document granting permission to organize  Includes name, purpose, address of the business  Stock  Ownership shares of the corporation  Stockholders are the people who buy stock in a company  Board of Directors  Hires managers to act on their behalf and run the business

6. ADVANTAGES  Easily raise money by selling stocks  Wal-Mart, BP, Exxon Mobil  Board of directors can hire professional managers to run the business DISADVANTAGES  Expensive to set up  Subject to more government regulation  Must release reports on a regular basis  Give detailed financial information about the company

7.  Labor Unions – group of workers who band together for better working conditions and higher pay  Local unions ▪ Members of a union in a factory or company  National Union ▪ American Federation of Labor-Congress of Industrial Union ▪ Represents more than 13 million working men and women across the nation

8.  Collective Bargaining  Officials from the union and the company meet to discuss the workers new contract  Mediation  Bring in a third party who tries to help them reach a compromise agreement  Arbitration  A third party listens to both sides and then decides how to settle the disagreement

9.  Strike – all workers in the union refuse to go to work  Usually walk up and down in front of the work place carrying picket signs  Boycott  Refusal to buy the businesses products

10.  Safe Products to consumers  Create a safe workplace for workers  No discrimination  Social Responsibility  Pursue goals that benefit society  Target promotes programs of community and national volunteering