Corporate Structures and Labor Relations

The video tutorial explains the differences between sole proprietorships, partnerships, and corporations, highlighting the benefits of corporations, such as limited liability and the ability to raise capital through stock. It discusses multinational corporations and their global influence. The video also covers labor unions, their formation, and strategies like strikes and collective bargaining. It examines the decline in union membership due to right-to-work laws, outsourcing, and improved workplace laws. Finally, it introduces cooperatives and nonprofit organizations, emphasizing their focus on shared benefits and tax advantages.

What is a key characteristic of a corporation that distinguishes it from a sole proprietorship?

• It cannot issue stock.

• It has a separate legal identity from its owners.

• It is not a legal entity.

• It has a single owner.

What does owning a share in a corporation mean for an individual?

• They cannot sell their shares.

• They must manage the corporation's daily operations.

• They are personally liable for the corporation's debts.

• They own a portion of the corporation.

What is a multinational corporation?

• A corporation that operates only in its home country.

• A corporation with branches in multiple countries.

• A corporation owned by a single individual.

• A corporation that cannot issue stock.

What is the primary purpose of forming a labor union?

• To negotiate better working conditions and wages.

• To increase the corporation's profits.

• To increase the number of working hours.

• To reduce the number of employees.

What is a strike?

• A method to increase production.

• Workers collectively deciding not to work.

• A legal action taken by a corporation.

• A negotiation between a union and management.

What is one reason for the decline in union membership?

• Increase in union fees.

• Increase in manufacturing jobs.

• Introduction of right-to-work laws.

• Decrease in government regulations.

What does the term 'outsource' mean?

• To hire more local workers.

• To increase the corporation's profits.

• To reduce the number of employees.

• To obtain goods or services from a foreign source.

What is a cooperative?

• A business owned and operated by a group for mutual benefit.

• A business owned by a single individual.

• A business that issues stock to the public.

• A business that cannot make a profit.

What is a characteristic of nonprofit organizations?

• They pay high taxes.

• They reinvest profits into the organization.

• They are owned by shareholders.

• They can issue stock.

What is the main lesson regarding the power of numbers in business?

• Businesses should operate independently.

• Unions are no longer necessary.

• Workers and businesses benefit from forming partnerships.

• Corporations should avoid issuing stock.