Corporations and Labor Organizations

The video tutorial explains the structure and benefits of corporations, highlighting their ability to raise capital through stock issuance and the concept of limited liability for shareholders. It discusses the role and strategies of labor unions, including strikes and collective bargaining, and examines the decline in union membership due to right-to-work laws, outsourcing, and improved government regulations. The video also covers cooperatives, which empower workers through shared ownership, and nonprofit organizations, which focus on community benefits rather than profit.

What is a key advantage of a corporation over a sole proprietorship?

• Unlimited liability for debts

• Inability to issue stock

• Separate legal identity from owners

• Ownership by a single individual

What is a defining characteristic of a multinational corporation?

• It operates only within its home country

• It has branches in multiple countries

• It is owned by a single individual

• It cannot issue stock

What is a primary reason workers form labor unions?

• To increase individual power

• To reduce the number of working hours

• To negotiate better working conditions collectively

• To eliminate the need for strikes

Which of the following is NOT a reason for the decline in union membership?

• Right-to-work laws

• Increase in manufacturing jobs

• Outsourcing of manufacturing

• Government workplace safety laws

What is a cooperative primarily focused on?

• Maximizing profits for shareholders

• Helping its members

• Expanding into international markets

• Issuing stock to the public

How do nonprofit organizations differ from for-profit businesses?

• They are taxed on earnings

• They have no owners

• They focus solely on profit

• They can issue stock

What is a common benefit for members of a cooperative?

• They receive a fixed salary

• They get a portion of the profits

• They are exempt from all taxes

• They have no decision-making power