1. SOLE PROPRITORSHIP Business that is organized by one single owner. Positives Easiest type to organize Owner has the power to make decisions Profit does not have to be shared Negatives Unlimited liability – owner is responsible for all debts Limited capital – only have your financial resources Limited life – if owner dies, business must be reorganized Employees hard to attract

2. PARTNERSHIP A legal joining of two or more individuals in a business. The least common form of business organization. Formed by a legal agreement called the articles of partnership. Positives Additional financial capital Can share expensive start- up costs Each partner brings specific talents Negatives Unlimited liability – financially responsible for personal as well as business debts of partners Limited life – if partner dies, must reorganize Legal structure is complicated

3. CORPORATION A business recognized by law: rights & responsibilities of an individual; own property, pay taxes, sue or be sued. Corporations are formed through a charter granted by the government. Positives Raise $ through the sale of stocks/bonds Limited liability – only responsible for what you invest in company Professional managers Unlimited life – many professionals involved, business does not need to be reorganized Negatives Expensive & complex to start Owners have little control/decision making Government regulation/corporate income taxes Most difficult to organize

4. NON-PROFIT ORGANIZATION An organization that operates like a business to support its members. Structured much like a corporation, but do not operate for a profit. Non-profits seek to provide a service to its members, or the community in general. Examples – Churches, YMCA, State Employees Credit Union

5. TYPES OF WORKERS Blue-Collar Worker – category of workers employed in crafts, manufacturing, and non-farm labor. White-Collar Worker – category of workers employed in offices, sales, or professional positions. Agricultural Worker – category of workers involved in farm labor. Categories of Skill Unskilled Worker – people whose job requires no specialized training. Semi-skilled Worker – people whose job requires some training in job-related skills, often modern technology. Skilled Worker – people who has learned a trade or craft either through a vocational school or as an apprentice. Professional – highly educated individuals with college degrees and usually additional training.

6. LABOR UNIONS Purpose – organized to improve wages and working conditions for its members. History – Labor unions became prevalent during the early 1900 ’ s as the industrial revolution changed the US economy. Unions were instrumental in improving working conditions in factories, working hours, wages, and creating child labor laws. Recently labor unions have seen a decline in membership because of the decline in blue collar jobs in the US, and the movement of manufacturing jobs overseas. Examples Craft Union – union made up of skilled workers in a specific trade or industry. Industrial Union – union made up of all workers in an industry regardless of job or skill level. AFL-CIO – American Federation of Labor – Congress of Industrial Organizations. Organization that combined Craft and Industrial unions.

7. LABOR UNIONS (2) Levels of Organized Labor (Labor Unions) Local Union – members of a union in a factory, company, or geographic area. National Union – Individual industrial or craft unions that represent local unions nationwide. Federation – (AFL-CIO) – represents 13 million people in US and other countries. Types of Union Agreements Closed Shop – workers had to belong to the union in order to be hired by a company. (Taft-Hartley Act 1947 – illegal) Union Shop – must join union after being hired. (States can ban) Right-to-Work-Laws – States laws preventing unions from forcing workers to join. Federal Regulation – National Labor Relations Board

8. COLLECTIVE BARGAINING Collective Bargaining – process by which union and company meet to discuss the terms of worker ’ s contracts. Mediation – 3 rd party brought in to help reach an agreement; not forced decision. Arbitration – 3 rd party listens to both sides and makes a final decision. Strike – workers in union refuse to work until demands are met. Picketing – workers carry signs outside business to alert public of issues workers have with the company. Boycott – workers urge public to refuse to purchase goods or services due to worker treatment. Lockout – company blocks workers from entering building until workers agree to a contract.