Business and Labor

Question 1

Which theory of wage determination best explains why workers who belong to a union typically receive higher weekly wages

Accepted Answer

negotiated wages

Question 2

Why would a successful business sell its model as a franchise?

Accepted Answer

increase profitability through the franchise payment and royalty fees

Question 3

Labor unions protect workers' interests by negotiating with industry management over_____. (Select ALL that apply)

Accepted Answer

hours and wages, vacation time, health-care coverage

Question 4

Which piece of legislation established the right of unions to have collective bargaining?

Accepted Answer

Wagner Act of 1935

Question 5

The two-tier wage system reduces union salary scales by_________.

Accepted Answer

hiring new workers at lower wages

Question 6

Type of union does not require membership but does require payment of dues to finance efforts that benefit all workers

Accepted Answer

agency shop

Question 7

How does arbitration differ from mediation?

Accepted Answer

In arbitration, both parties must accept the final decision

Question 8

What economic goals does a minimum wage work to achieve? (Select ALL that apply)

Accepted Answer

economic equity, economic security

Question 9

Which type of non-profit might buy food in bulk, sell the food at low prices, and donate time to run their operation?

Accepted Answer

consumer cooperative

Question 10

Which characteristics pushed the local minimum wage higher than the federal minimum wage in several U.S. cities?

Accepted Answer

labor shortages, higher cost of living

Question 11

Sole proprietorships account for about 4% of total sales, but they create about ___ % of total profits earned.

Accepted Answer

25

Question 12

What power does the president of the United States have over labor--management disputes? (Select ALL that apply)

Accepted Answer

The president may use the 1926 Railway Labor Relations Act to end a strike, President may publicly appeal to both parties to resolve their differences, the president may fire federal workers who strike

Question 13

Critics of multinational corporations contend that these businesses_______. (Select ALL that apply)

Accepted Answer

pay low wages to workers, export scarce resources, alter traditional ways of life

Question 14

How is a legally incorporated nonprofit organization different from a profit-seeking business?(Select ALL that apply)

Accepted Answer

it pays no dividends to its members, it has limited liability, it pays no income taxes

Question 15

What were the two main types of labor unions that dominated the industrial period following the civil War?

Accepted Answer

craft and industrial unions

Question 16

The Taft-Hartley Act of 1947 included a provision allowing states to pass right-to-work laws with the goal of ______?

Accepted Answer

illegal to force workers to join a union as a condition of employment

Question 17

How does a business treat depreciation? (Select ALL that apply)

Accepted Answer

as an expense that lowers taxable income, as part of the business's cash flow

Question 18

What is the purpose of collective bargaining? (Select ALL that apply)

Accepted Answer

to minimize disputes between labor and management, to seek compromise between labor and management

Question 19

What does the term glass ceiling mean?

Accepted Answer

Discrimination stops women and people of color from advancing in a career

Question 20

What strategies can unions use to encourage employers to meet their demands? (Select ALL that apply)

Accepted Answer

strike, boycott, negotiate

Question 21

An example of a bulk-gaining industry that locates near the market for its finished product is the _____.

Accepted Answer

beverage industry

Question 22

One advantage that holding preferred stock has over holding common stock is that preferred stockholders _________.

Accepted Answer

are first in line for dividends

Question 23

The market theory of wage determination suggests that wages are determined by_________.

Accepted Answer

supply and demand

Question 24

What is one advantage a partnership has over a sole proprietorship?

Accepted Answer

better chance of getting a bank loan

Question 25

How would success at negotiating higher wages for workers contribute to a union's decline? (Select ALL that apply)

Accepted Answer

Union-produced goods become more expensive, Unionized plants close as consumers switch to cheaper products.

Question 26

What is a lockout?

Accepted Answer

a refusal to let employees work until they agree to meet certain demands

Question 27

In what broad labor category would electricians be classified when determining their wages?

Accepted Answer

skilled labor

Question 28

Which industries have the highest rates of unionization?

Accepted Answer

local, state, and federal governments

Question 29

To what does the concept of indexing refer?

Accepted Answer

linking a series such as the minimum wage to rising prices

Question 30

A partnership in which all partners share responsibility for the financial obligations of the business is called a ____.

Accepted Answer

general partnership

Question 31

Investors who provide funds in exchange for partial ownership of the business are known as _____.

Accepted Answer

venture capitalists

Question 32

Which business has the widest range and the lowest threshold?

Accepted Answer

the Eiffel Tower

Question 33

What is one advantage of a sole proprietorship?

Accepted Answer

the owner keeps all the profits

Question 34

How does the Better Business Bureau protect consumers?

Accepted Answer

It maintains records of consumer inquiries and complaints

Question 35

Efforts by the federal government to fight hiring and wage discrimination include______. (Select ALL that apply)

Accepted Answer

Civil Rights Act of 1964, Equal Employment Opportunity Commission, Equal Pay Act of 1963

Question 36

What advantages do corporations have over sole proprietorships and partnerships? (Select ALL that apply)

Accepted Answer

ease of raising financial capital, limited liability

Question 37

What does it mean for a government agency to have a direct role in the economy?

Accepted Answer

The agency competes with private businesses

Question 38

What occurs from a merger when two companies combine to build a single company based on the best characteristics of each

Accepted Answer

synergy

Question 39

What conditions must be met for a business to grow through reinvestment? (Select ALL that apply)

Accepted Answer

Cash flow is positive, Reinvestment through greater use of depreciation.

Business and Labor

Questions 39

Business and Labor

Questions 39