| A | B |
|---|
| Charter | A document that sets up a legal corporation |
| Franchise | Business investment to rent or lease a business model |
| Business Merger | Combination of 2 or more businesses into a single firm |
| Merger - Faster Growth | Company size and sales appear to grow faster |
| Synergy | Firms combine best of each to be better & stronger |
| Economies of Scale | Firms combine to lower cost of production |
| Diversification | Acquire new product lines to spread out risk |
| Elimination of Rivals | Firms merge to eliminate competition |
| Lose Corporate Identity | Name change to forget negative experience |
| Conglomerate | Firm with 4+ unrelated products |
| Multinational | Firm with manufacturing/service in different countries |
| Incubator | Place where entrepreneurs get training/assistance to start a business |
| Venture Capitalist | Provider of group's investment funds for startups |
| Angel Investors | Affluent people who provide funds for startups |
| Crowdfunding | Using social networks to gain investors |
| Non-profit Organization | Operates like a business but doesn't seek financial gain |
| Co-op | Nonprofit operating for economic benefit of members |
| Consumer Co-op | Association buys bulk goods and sold to members at lower prices |
| Service Co-op | Association provides services to members such as a credit union |
| Producer Co-op | Producers who unite to sell products directly to markets |
| Chamber of Commerce | Organization of local businesses to promote their interests |
| Better Business Bureau | Organization to provide information on local companies to consumers |
| Factors of Production | Productive resources needed to produce goods |
| Land | Natural resources or "gifts of nature". |
| Capital | Tools, equipment, and factories used in production |
| Labor | People with abilities and efforts (not entrepreneurs) |
| Entrepreneurs | Risk taking individuals who introduce new services/products for profit |
| Human Capital | Sum of all people's skills, abilities, health, and motivation |
| Division of labor | Divide tasks separately to different workers |
| Specialization | Assignment of tasks to those who perform them most efficiently |
| Unskilled labor | Workers in jobs that do not require people with special skills |
| Semi-skilled labor | Workers who need enough skills to operate machines; minimal training |
| Skilled labor | Workers with higher investment in education and training |
| Professional Labor | Highest level of knowledge based on education and managerial skills |
| Theory of Negotiated Wages | Wage rates based on bargaining strength of organized labor |
| Signaling Theory | Employers are willing to pay more for people with certificates, diplomas, & degrees |
| Collective Bargaining | Process of negotiating between union labor and management |
| Grievance Procedure | Outlining a way for disputes to be resolved |
| Mediation | Resolving a dispute through neutral third party-often non-binding |
| Arbitration | Resolving a dispute by a neutral third party-binding |
| Fact Finding | Agreement by two parties for a third party to collect facts of a dispute |
| Injunction | Court order to prevent a company or union from taking or not taking certain action |
| Seizure | Temporary government takeover of operations |
| Frictional Unemployment | Short term, between jobs, little economic hardship |
| Structural Unemployment | Caused by fundamental change in economy that reduces demand such as outsourcing |
| Technological Unemployment | Caused by automation that makes some skills obsolete |
| Cyclical Unemployment | Unemployment directly related to laid off workers when economy has a downturn |
| Season Unemployment | Unemployment caused by annual changes in weather |
| Outsourcing | Hiring outside firms to perform non-core operations to lower operating costs |
