in the united states, many important decisions are...

In the United States, many important decisions are madeby economic institutions. Do you work at a business?Participate in a club? Chances are these businesses andeconomic institutions play a significant role in your life.

To learn more about how business organizations andeconomic institutions operate, view the Economics & Youvideo lesson 4: Business Organizations.

Know-Want-Learn Study Foldable Make this foldable to help you organizewhat you know, what you want to know, and what you learn about businessand labor.

Step 1 Fold two sheets of paperin half from top to bottom. Cut thepapers in half along the folds.

Reading andWriting Beforereading the chapter,write what you alreadyknow about the typesof businesses, laborunions, and businessesin our economy underthe tabs of yourfoldable. Also writeone question you haveon each tab. As youread, summarize what you learn undereach tab.

Step 2 Fold each of the fourpapers in half from top to bottom.

478Running a business involves risks as

well as expectations.

Cut alongthe foldlines.

1"

Cut 1 inch fromthe edge throughthe top flap only. Staple here.

Types of Businesses

478-485 U6 CH22 S1 CT-860970 12/8/03 9:22 PM Page 478

Catherine Karnow/Woodfin Camp & Assoc.

Step 3 On each folded paper,make a cut 1 inch from the side on the top flap.

Step 4 Place the folded papersone on top of the other. Staple thefour sections together and label thetop three tabs: Types of Businesses,Labor Unions, and Business in OurEconomy.

▲

Chapter Overview Visit the CivicsToday Web site at civ.glencoe.comand click on Chapter Overviews—Chapter 22 to preview chapterinformation.

478-485 U6 CH22 S1 CT-860970 12/8/03 9:30 PM Page 479

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GUIDE TO READING

Main IdeaSole proprietorships,partnerships, and corporations are the three common forms of business organizations.

Key Termssole proprietorship,unlimited liability,financial capital,partnership, articles ofpartnership, corporation,charter, stock,stockholder, board ofdirectors, limited liability, double taxation,cooperative

Reading StrategyClassifying InformationAs you read the section,complete a diagram likethe one below by identify-ing at least two real-lifeexamples in each of thecategories.

Read to Learn• What are the different

ways in which busi-nesses are organized?

• What are the advan-tages and disadvan-tages of each type ofbusiness organization?

Types ofBusinesses

SECTION

A small restaurantin New Orleans

Sole Proprietorship

Partnership

Corporation

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480 Chapter 22 Business and LaborHazel Hankin/Stock Boston

Almost every day of your life you come into contact withsome kind of business. Businesses can be organized in a number of ways. Some are corporations, while others are small companies, ownedand operated by one individual or by a few people. The small businessremains the main economic force in many American communities: “Small businesses employ the bulk of the workers in New Orleans and spell the future of the area economy,a local economist said. . . . In his latest study, TimothyRyan, dean of the University of New Orleans College of Business, found that over the past decade, therehad been a 36 percent increase in the number ofbusinesses that employ fewer than 100 employees.The number of firms with more than 100 employeeshad declined by 6.4 percent. . . . But, the bulk of thegrowth has been in sole proprietorships, which are up74.6 percent. . . .”

—The Times-Picayune (New Orleans),June 21, 2001

ProprietorshipsIt is one thing to dream about running your own business,

but it is something quite different to actually do it. Many peo-ple think of business ownership in terms of independence, free-dom, and profits. They tend to overlook competition,responsibility, and the possibility of failure. In this section, youwill study the different types of business organizations that arecommon in the American economy.You will discover that eachtype of business organization has advantages and disadvantagesin different situations.

The most common form of business organization in theUnited States is the sole proprietorship, or proprietorship—a business owned and operated by a single person. You haveseen such businesses in your neighborhood—beauty salons orcleaners or pizza restaurants.Though common, the proprietor-ship is only one of three ways of organizing a business.

Look at the graphs of business organizations on page 481.You’ll see that there are more proprietorships than any othertype of business.

Chapter 22 Business and Labor 481

StructureA proprietorship is the easiest form of

business to set up. Have you ever earnedmoney mowing lawns or babysitting? If so,you were a sole proprietor. Generally, any-one can start a sole proprietorship when-ever they want to.

AdvantagesThe biggest advantages of sole propri-

etorships are that the proprietor has full pridein owning the business and receives all theprofits. In addition, the proprietor can makedecisions quickly, without having to consult aco-owner, boss, or “higher-up.” This flexibil-ity means that the owner can make an imme-diate decision when problems arise.

DisadvantagesSole proprietorships have several disad-

vantages, though. First, the owner is finan-cially responsible for any and all problemsrelated to the business. This is calledunlimited liability. If the business hasdebts, the owner’s personal assets, or itemsof value such as houses, cars, jewelry, andso on, may be seized to pay the debts.

Second, sole proprietors find it difficultto raise financial capital—the moneyneeded to run a business or enable it togrow larger. Most sole proprietors use theirown savings or credit cards or borrow fromfriends and family when they need moneyfor their businesses.

Another disadvantage is the difficulty ofattracting qualified employees. Many highschool and college graduates are morelikely to be attracted to positions with largerfirms that can offer better fringe benefits—paid vacations, sick leave, and health andmedical insurance—in addition to wagesand salaries.

Identifying Who makesthe decisions in a sole proprietorship?

PartnershipsA partnership is a business owned by

two or more people. As you see on thegraph, there are fewer partnerships thanany other form of business.

Structure When they start the business, partners

draw up a legal agreement called articlesof partnership. This document identifieshow much money each will contribute andwhat role each will play in the business. Itclarifies how they will share profits orlosses. Finally, the document describeshow to add or remove partners, or evenhow to break up the business if they wantto close it down.

Forms of BusinessOrganization

Corporations86%

Proprietorships5%

Partnerships9%

Sales

Businesses can be organized in theUnited States in a number of ways.Which business organization accountsfor the largest amount of sales?

Partnerships8%

Corporations20%

Proprietorships72%

Number of Businesses

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482 Chapter 22 Business and Labor

Advantages Partnerships overcome some disadvan-

tages of a proprietorship. Because there aremultiple owners, partnerships can usuallyraise more money. If money cannot be bor-rowed, the partners can always take in newpartners to provide funds. Like proprietors,partners pay no corporate income tax. Inaddition, each owner often brings specialtalents to the business. As a result, each canoversee a particular part of the business,which helps the business succeed.

DisadvantagesOne disadvantage of the partnership is

that the legal structure is complex. When apartner is added or removed, a new agree-ment has to be made.

The main disadvantage, however, is thatthe owners have unlimited liability. Thismeans that each owner is fully responsiblefor all the debts of the partnership. Supposethat you and four others form an equalpartnership.You would own one-fifth of thebusiness and have the right to one-fifth ofits profits. Suppose, though, that someone

was hurt by the company and sued fordamages. If you were the only owner whohad any money, you could be required topay 100 percent of the damages.

Describing What is themain disadvantage of a partnership?

CorporationsThe corporation is a business recog-

nized by law that has many of the rightsand responsibilities of an individual. Infact, a corporation can do anything a per-son can do—own property, pay taxes, sueor be sued—except vote. One-fifth of allbusinesses are corporations.

Structure First, someone who wants to start a

corporation must get a charter—a govern-ment document granting permission toorganize. The charter includes the name,purpose, address, and other features ofthe business. The charter also specifies theamount of stock, or ownership shares of thecorporation, that will be issued. The people

Partnership When two or more people pool their resources, they may form apartnership. Who assumes the risk in a partnership?

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Pictor


who buy this stock—the stockholders—become the owners of the corporation.The corporation uses the money receivedfrom selling the stock to set up and runthe business.

The stockholders elect a board ofdirectors to act on their behalf. The boardhires managers to run the corporation on adaily basis.The chart on page 484 shows therelationship of these groups. As you can see,the business owners and the managers of acorporation are different groups of people.

Advantages The first advantage of the corporation is

the ease of raising financial capital. If itneeds additional money to expand, forexample, the corporation can sell newshares of stock. Corporations also find iteasier than the other types of businesses toborrow large sums of money.

The second advantage results from theease of raising capital. This allows corpora-tions to grow to be huge.Today’s large cor-porations employ thousands of workers andcarry out business around the world.

Many modern corporations are huge.A recent study found that some of thesecorporations are bigger than the entireeconomies of many countries. GeneralMotors had the world’s 23rd largest econ-omy, followed by Wal-Mart (25th), ExxonMobil (26th), Ford Motor (27th) andDaimlerChrysler (28th). Each of these cor-porations was larger than the domesticeconomies of Poland (29th), Norway (30th),Indonesia (31st), Saudi Arabia (33rd), orFinland (34th).

Third, the board of directors can hireprofessional managers to run the business.If those managers do not succeed, theboard can replace them with a new team.

A fourth advantage is that ownership ofthe corporation can be easily transferred.For example, if you own shares in one

Courtesy family of Mike Chait

Michael Chait has always loved makingmovies. First, he made 5-minutefilms; then, 30-minute films. When TIMEcaught up with him, Chait was about towrap his first two-hour feature, a ’70s-styleaction film that took two years to make.

Chait doesn’t know where his latestmovie will end up—perhaps at video storesor even a film festival. But he does knowwhere he wants to be 10 years from now:behind the camera.

“I’ve decided that no matter how longit takes, that’s what my career is going tobe,” Chait told TIME.

Meantime, Chait has made a name forhimself—and a bit of cash—as a movieextra. Sheer luck and persistence won hima nonspeaking role when Billy Crystal wasin Detroit making a film.

Still, Chait wouldn’t recommend work-ing as an extra for the money—or the actingexperience. His first movie took some ninehours, and he was on screen for only 13seconds. For the Billy Crystal film, heworked 12-hour days in 90-degree heat.

“For anyone who wants to act, [workingas an extra] would be extremely disappoint-ing,” says Chait. “But for someone who isinterested in being behind the camera, it’sa great experience—you get to see themdo it. There were certain shots that tooktwo hours to get right. It’s very rewarding,but it’s not for everybody.”

Michael Chait from Michigan

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THE OWNERS (STOCKHOLDERS) elect the

BOARD OF DIRECTORS who selects

THE PRESIDENT who hires

VICE PRESIDENT OF PRODUCTION

VICE PRESIDENT OF SALES

Domestic International PayrollQualityControl

Research andDevelopment

VICE PRESIDENT OF FINANCE

Corporate Chain of Command

In a corporation, the owners of the business—the stock-holders—are different from the management team—thepresident and vice presidents. In this organizationalchart, who reports to the vice president of production?

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484 Chapter 22 Business and LaborDigital Stock

corporation and you would rather haveshares in another, you simply sell the firststock and buy the second.

A final advantage of the corporation islimited liability. Only the corporation,not its owners, is responsible for the debtsof the corporation. For instance, if youpaid $1,000 for stock in a corporation thatlater went bankrupt, you would lose your$1,000 investment—but no more thanthat. Unlike the proprietorship or thepartnership, you would not be liable forthe company’s debts.

These advantages have combined tomake corporations very successful. As thegraphs on page 481 show, they account forabout 90 percent of all sales by all businesses.

Disadvantages Corporations have their disadvantages

as well. First, they often are expensive andcomplex to set up.

In addition, the business owners havevery little say in the management of thebusiness. Millions of people own the sharesof major corporations, but it is difficult forthem to unite to force the managers to actin a particular way.

Third, corporations are subject to moreregulation by government than the otherforms.They must release certain reports ona regular basis. These reports give detailedfinancial information about the company.The reports are designed to keep potentialand current shareholders informed aboutthe state of the business.

Finally, stockholders are subject todouble taxation, or paying taxes twiceon corporate profits. First, the corpora-tion pays a tax on its profits. Then, whenthe profits are distributed to the stock-holders, the stockholders have to payincome tax on those earnings. Sole pro-prietors and partners also must pay taxes

Checking for Understanding1. Key Terms Use the following

terms in complete sentencesthat demonstrate each term’smeaning: sole proprietorship,partnership, corporation.

Reviewing Main Ideas 2. Describe What are the advan-

tages of a partnership over asole proprietorship? What arethe advantages of a sole propri-etorship over a partnership?

3. Compare Name three kinds ofcooperatives and describe whatthey do for their members.

Critical Thinking 4. Making Comparisons If you

were planning to open your ownbusiness, which form of busi-ness organization would you prefer—sole proprietorship, partnership, or corporation?Justify your answer.

5. Organizing Information On adiagram similar to the onebelow, identify the advantages of the corporation.

Analyzing Visuals6. Interpret Study the circle

graphs on page 481. Is any sin-gle form of business organiza-tion responsible for more thanone-half of the nation’s sales?What percentage of businessesare partnerships?

Advantages

SECTION ASSESSMENT

on the profits they earn. However, propri-etorships and partnerships do not pay aseparate profit tax.

Other Business OrganizationsProfit-seeking proprietorships, partner-

ships, and corporations are not the onlytypes of business organizations. Otherorganizations operate on a “not-for-profit”basis. A nonprofit organization operates ina businesslike way to promote the interestsof its members. Examples of nonprofitinstitutions include churches, hospitals,and social service agencies.

Another example of a nonprofit orga-nization is the cooperative. A cooperativeis a voluntary association of people formedto carry on some kind of economic activ-ity that serves to benefit its members.Cooperatives provide a variety of services.Consumer cooperatives buy bulk amountsof goods on behalf of their members.Service cooperatives provide services suchas insurance and credit to their membersrather than goods.

Producers, like consumers, can alsohave cooperatives. A producer cooperativehelps members promote or sell their prod-ucts. For example, farmer cooperatives helpmembers sell their crops directly to centralmarkets or to companies that use the mem-bers’ products.

Describing Is it the duty ofthe board of directors to run the corporation’sday-to-day operations? Explain.

�BE AN ACTIVE CITIZEN�7. Classify Keep a record of all the

businesses you visit during aweek. Classify each as a soleproprietorship, partnership, orcorporation. Compare your listsin class.


Franchising is a recentphenomenon.

A franchise is a contract in which afranchiser sells to another businessthe right to use its name and sell itsproducts. Today, many motel, gas station, and fast-food chains are fran-chises. Franchising, however, beganin the mid-1800s when inventor IsaacSinger allowed several merchants tomarket his sewing machines.

Study Central TM To review this section, go toand click on Study CentralTM.civ.glencoe.com

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GUIDE TO READING

Main IdeaA labor union is an orga-nization that seeks toincrease the wages andimprove the working con-ditions of its members.

Key Termslabor union, closed shop,union shop, right-to-worklaws, modified unionshop, collective bargaining, mediation,arbitration, strike, lockout

Reading StrategyOrganizing InformationAs you read the section,complete a diagram likethe one below by identify-ing three kinds of unionarrangements.

Read to Learn• What are the different

types of unions?• How are negotiations

between unions andmanagement conducted?

Labor UnionsSECTION

486 Chapter 22 Business and LaborMichael A. Dwyer/Stock Boston

To have some control over the wages they receive as well asover other working conditions, American workers form labor unions.Unions are based on the idea that workers as a group willhave more influence on management than willindividual workers acting alone. The AFL- CIO agrees:“Union membership helps raise workers’ pay andnarrow the income gap that disadvantagesminorities and women. Union workers earn 28percent more than nonunion workers . . . The union wage benefit is even greater forminorities and women. Union women earn 34percent more than nonunion women, AfricanAmerican union members earn 29 percent more thantheir nonunion counterparts, for Latino workers, theunion advantage totals 59 percent and for Asianworkers, the union advantage is 11 percent.”

— AFL-CIO June 2005

Organized LaborSome workers choose to organize. They join together to

form labor unions, groups of workers who band together tohave a better chance to obtain higher pay and better workingconditions. Only about 14 percent of American workers belongto unions. Still, unions play an important role in the nation’seconomy and political life.

Types of UnionsThere are two types of unions. Workers who perform the

same skills join together in a craft or trade union. Examples arethe printers union or the plumbers union. Some unions bringtogether different types of workers who all belong to the sameindustry. These are called industrial unions. An example is theUnited Auto Workers, which includes many different kinds ofworkers in the auto industry.

In the past, unions were formed mainly by workers in heavyindustry. Today, though, people in jobs as different as airlineworkers, teachers, and professional athletes belong to unions.

Union workers

Union Arrangements

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Right-to-Work, State by State

TX

NMAZ

NV

CA

OR

WAMT

IDWY

UT CO KS

NE

SD

ND MN

IA

MO

AROK

LAMS AL GA

FL

SC

NC

VA

TN

KY

OHINIL

MIWI

AK

HI

NJDE

MD

CTRI

MAVT

NH

PA

NY

ME

WV

States with Right-to-Work Laws

States without Right-to-Work Laws

Source: National Right to Work Committee.

Today, 22 states have right-to-work laws allowingworkers a choice about joining a union. In whichU.S. regions are most right-to-work states?

486-490 U6 CH22 S2 CT-860970 12/8/03 10:29 PM Page 487


How Unions Are Organized Organized labor operates at three levels;

the local union, the national or interna-tional union, and the federation.

A local union is comprised of the mem-bers of a union in a factory, company, orgeographic area.The local union deals witha company by negotiating a contract andmonitoring the terms of the contract.

Above the local unions are the nationalunions.These organizations are the individ-ual craft or industrial unions that representlocal unions nationwide. Unions that alsohave members in Canada or Mexico areoften called international unions.

National unions send organizers tohelp employees campaign to set up localunions. To help in negotiating a contract

between a local union and a particularcompany, the national unions providelawyers and other staff members. In cer-tain industries such as steel and mining,the national union negotiates the contractsfor the entire industry. After the majorityof union members accepts the contract, allthe local unions within the industry mustwork under that contract. Some of thelargest unions are the United AutomobileWorkers (UAW) and the United Steel-workers of America (USWA).

At the federation level is the AFL-CIO,formed in 1955 by the merger of theAmerican Federation of Labor and theCongress of Industrial Organizations. Thefederation represents more than 13 millionworking men and women nationwide.

Arthur Rothstein/CORBIS

Union ArrangementsSome people criticize labor unions for

trying to control the supply of labor. In thepast some unions supported the closedshop. This means that a worker had tobelong to the union in order to be hired by acompany. This arrangement was more com-mon in the past than today. When the gov-ernment passed the Taft-Hartley Act in

1947, closed shops became illegal for anycompany that makes goods that are sold instates other than the state in which the com-pany is located. Since most businesses makegoods for interstate sales, there are fewclosed shops today.

More common now is the union shop.Under this arrangement, companies can hirenonunion people, but those workers mustjoin the union once they begin working. Onepart of the Taft-Hartley Act allows individualstate governments to ban this kind ofarrangement. Twenty-two states have passedright-to-work laws, which prevent unionsfrom forcing workers to join. The map onpage 487 shows the states that have right-to-work laws.

In a modified union shop, workers donot have to join the union after they arehired but they can choose to do so. If theydo, they must stay in the union as long asthey work for that employer.

A union cannot be brought into a work-place unless a majority of the workers votesin favor of it. They might join an existingunion or form a completely new one. A fed-eral government agency, the NationalLabor Relations Board (NLRB), makessure that these union elections are carriedout fairly and honestly.

Summarizing Is the unionshop illegal in right-to-work states? Explain.

NegotiationsOnce workers choose to be represented

by a union, the union carries out collectivebargaining for them. Under collectivebargaining, officials from the union andfrom the company meet to discuss theterms of the workers’ new contract. Eachcontract typically covers a few years. As thecontract nears its end, labor and manage-ment meet to negotiate a new contract.

César Estrada Chávez(1927–1993)César Chávez knew the suffer-ing of farmworkers. He hadlabored in the fields since age10, when his family lost theirArizona farm during the GreatDepression. Like thousands of other farmers, the Chávezfamily became migrant work-ers. Chávez attended some 65

schools before dropping out at the end of 8th grade.

After serving in World War II, Chávez took apaid job to win greater rights for MexicanAmericans. However, he could not forget themigrant workers. In 1962, with the support ofhis wife Helen Fabela Chávez, he returned tothe fields and his dream of organizing farm-workers into a union.

In 1965, Chávez launched La Huelga—“the strike”—in which he battled the power of grape growers in the San Joaquin Valley.Chávez, who lived on a salary of $5 a week,asked Americans to boycott grapes until grow-ers signed union contracts. Some 17 millionAmericans responded. “For the first time,”Chávez said, “the farmworker got somepower.” The power came in the form of theUnited Farm Workers, the first successful farmworkers union in the nation’s history.


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Checking for Understanding1. Key Terms Write a true state-

ment and a false statement foreach of the following terms:closed shop, mediation, lockout.Indicate which statements aretrue and which are false. Beloweach false statement explainwhy it is false.

Reviewing Main Ideas 2. Identify What are the two kinds

of labor unions?3. Identify What is the process

through which unions and man-agement negotiate contractscalled?

Critical Thinking 4. Summarizing Information How

does a right-to-work law protectindependent workers?

5. Analyzing Information Assumethat you have been given the jobof mediating a strike betweenthe workers in a grocery storeand its management. On a dia-gram, identify three things youwould want to know before yousuggested a solution.

Analyzing Visuals6. Identify Study the map on page

487. Does North Carolina havea right-to-work law in place?Does Colorado?

SECTION ASSESSMENT

The negotia-tions focus on howmuch the workerswill receive inwages and bene-fits. They also talkabout how longthe workday is and

how many holidays the workers will have.The two sides discuss rules for working andprocedures for changing those rules.

Getting Outside HelpAt times the two parties cannot agree

on the terms for the new contract. Whenthat happens, they have different options.

They might try mediation, in whichthey bring in a third party who tries to helpthem reach an agreement. The mediatormeets with both sides and tries to help laborand management reach a compromise.

In some cases, the two sides choosearbitration. In this situation, a thirdparty listens to both sides and thendecides how to settle the disagreement.Both parties agree in advance to acceptwhatever the arbitrator decides.

Labor-Management ConflictUnions and management can also use

different tools to try to pressure the otherside to accept their positions. Workers cancall a strike, in which all workers in theunion refuse to go to work. Workers whochoose to go on strike often picket the busi-ness, marching in front of company buildingswhile holding signs. The signs explain whatthe strike is about.The workers hope that thebusiness will have to shut down without anyemployees to do the work, forcing the com-pany to accept the union’s contract terms.If striking and picketing do not settle the dispute, unions can encourage members and the public to boycott, or refuse to buy,the business’s products. The strongest tool that management has is the lockout. In alockout, the company blocks workers fromentering its buildings until they agree toaccept its contract terms.The business hopesthat the loss of income will cause difficultiesfor the union members and convince them toaccept the company’s position.

Comparing What is thedifference between a strike and a lockout?

�BE AN ACTIVE CITIZEN�7. Research Contact a firm in your

community that has a union. Askif all workers in the company arerequired to join or if only someare. Based on your information,determine if the union arrange-ment is a closed shop, a unionshop, or a modified union shop.


Student Web Activity Visitciv.glencoe.com and click onStudent Web Activities—Chapter 22 to learn moreabout labor unions.

What I needto know

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Critical Thinking

Why Learn This Skill?Every day you observe people and events orread facts and information. In the process youmake generalizations. That is, you reachbroader conclusions derived from a number offacts or details. Making valid generalizationscan lead you to new facts and insights.

Learning the SkillTo make generalizations, follow these steps: • Review the facts or particulars available to

you, separating facts from opinions.• Look for trends or patterns

that could be applied to sev-eral points of information.

• Ask yourself if you haveenough information to drawaccurate conclusions.Incomplete or inaccurate data may cause incorrect conclusions.

• Formulate a general statementthat makes a point and checkyour backup facts.

Practicing the SkillRead the account of theHomestead Strike on this page.On a separate sheet of paper,copy the valid generalizations amongthe following statements. Then tell how youcan support the generalizations you select.

Americans of the 1800s generally sup-ported union workers.Both Carnegie and Frick wanted to crushthe union at the Homestead Mill.Labor disputes could turn violent in theearly years of the labor movement.The Pinkerton Detective Agency opposedlabor unions.

4

3

2

1


Practice key skills with Glencoe’sSkillbuilder Interactive WorkbookCD-ROM, Level 1.

Making Generalizations

Applying the SkillHenry Frick

486-490 U6 CH22 S2 CT-860970 12/8/03 10:30 PM Page 490

Homestead Strike, 1896In 1896, iron and steel workers at the

Homestead Mill, owned by AndrewCarnegie, near Pittsburgh, Pennsylvania,wanted to negotiate with the owners forhigher wages and greater recognition.

Carnegie’s partner, Henry Frick, re-sponded to the union request by orderinga lockout and calling in strikebreakers.Thecompany hired the Pinkerton Detective

Agency to protect its facto-ries. Several people werekilled when violence brokeout between the strikers andthe guards.

At Frick’s request, thegovernor sent in the Penn-sylvania National Guard tosubdue the workers and thetownspeople. Frick reopenedthe mill with 1,700 nonunionworkers. “I will never recog-nize the union, never, never!”he said.

Bettmann/CORBIS

Research some recent data on women in theworkforce, such as the kinds of jobs they hold,salaries and wages, number employed, and soon.Write two generalizations based on thefacts.

GUIDE TO READING

Main IdeaIn a free enterprise econ-omy, businesses haveresponsibilities as well asrights.

Key Termstransparency,discrimination,social responsibility

Reading StrategyOrganizing InformationAs you read the section,complete a diagram likethe one below by identify-ing one or more responsi-bilities of businesses ineach category.

Read to Learn• What does social

responsibility entail?• What are the responsi-

bilities of businesses toconsumers, owners,employees, and theircommunities?

Businesses in Our Economy

SECTION

Equality for women, educational opportunities for thedisenfranchised, and corporate responsibility [of business] are not newconcepts for the family behind the largest gift ever to the University ofColorado at Boulder. . . . On Wednesday, university officials hailedthe New York–based Gerry and Lila Leeds familyfor giving Colorado University a record $35million gift, the sixth-largest to a businessschool nationwide and the largest ever for the Boulder campus. . . . Michael Leeds (theLeeds’s son) graduated from CU in 1974 with a degree in business administration. Hisbrother, Richard, graduated from CU witha degree in computer science the following year. “I am very grateful to my professors for giving me theeducational background to help me drive a business forward into great success,” Richard, 49, said.—Rocky Mountain News, October 4, 2001

The Roles of BusinessAs the story about the Leeds’s gift to the university reveals,

businesspeople can be very generous. This generosity comesnot only from major corporate givers like the Leedses. Localbusinesses, too, make similar efforts. They donate money orsupplies to school fund-raisers. They give money to supportchildren’s athletic teams. This community involvement is justone way that business plays a role in society.

Businesses play many different roles in our economy.Sometimes businesses act as consumers—they buy goods andservices from other businesses. Manufacturers buy energy andraw materials like steel, plastic, and glass. Insurance companiesbuy office furniture and supplies like paper. Stores purchasecomputers and software to track sales.

Businesses are also employers.They provide jobs—and paywages—to millions of workers across the country.

Of course, businesses are also producers. Businesses pro-duce a wide variety of goods and services for people with many

Responsibilities

Consumers: Owners:

Employees: Community:

491-497 U6 CH22 S3 CT-860970 12/8/03 10:05 PM Page 491

Leeds family members

Chapter 22 Business and Labor 491Courtesy University of Colorado at Boulder


different tastes, levels of income, and loca-tions. Businesses large and small produce thefood, clothing, and shelter that meet people’sbasic needs.They also create the cars, movies,CDs, appliances, banking services, air condi-tioning, and amusement parks that make lifemore enjoyable and more comfortable.

Explaining How dobusinesses act as consumers?

The Responsibilities of Business

As they carry out these roles, businesseshave different responsibilities. Sometimeslaws spell out those responsibilities. If so,business managers may suffer serious con-sequences if they do not act responsibly.

Responsibilities to ConsumersOne set of responsibilities is to con-

sumers. Businesses have the responsibility ofselling products that are safe. Products andservices should also work as they are prom-ised to work. A new video game should be

undamaged and run without flaws. An automechanic should change a car’s oil correctly.Businesses also have the responsibility ofbeing truthful in their advertising. Finally,businesses should treat all customers fairly.

Of course, it is good business to meetthese responsibilities. Doing so makes cus-tomers happy, and happy customers aremore likely to come back to the businessagain. Still, the government is sometimesforced to step in when a business does notmeet one of these responsibilities. It mightrequire a manufacturer to remove a prod-uct from the market because the product isunsafe. It might prosecute a business forviolating customers’ rights. These cases areinfrequent, however.

Responsibilities to OwnersAnother responsibility is to the owners

of the business.This is especially importantin corporations, in which the managers andowners are different groups of people.

To protect stockholders, corporations arerequired to release important financial infor-mation regularly. As a result, shareholders get

Effects Many economic activities may create unintended effects.Do you think the nearby railroad line had positive or negativeeffects on people living in this neighborhood? Why?

491-497 U6 CH22 S3 CT-860970 12/8/03 10:06 PM Page 492

James L. Amos/CORBIS

Analyzing Visuals State-sponsored activities, suchas exploration of new terri-tories and scientificresearch, not only yieldexciting new discoveries,but also foster economicgrowth. What argument isthe speaker making to win support for his voyage?

Business PhilanthropyA desire to make reading material available topeople at no cost led industrialist AndrewCarnegie to found libraries. In the late 1800sand early 1900s, Carnegie donated more than$55 million to build 2,500 libraries in theUnited States and many other countries. Animmigrant from Scotland, Carnegie believedthat people with the desire to learn should beable to educate themselves. Chances areyou’ve been in a library founded by Carnegie.


491-497 U6 CH22 S3 CT-860970 12/8/03 10:06 PM Page 493

income statements—reports on sales,expenses, and profits—several times a yearalong with reports from auditors to see thatthe information is accurate. Corporationseven post this information on the World WideWeb for everyone to examine.

Revealing this information is calledtransparency. The purpose of publishingthis information is to provide investors withfull disclosure before they choose to invest, orcontinue to invest, in the company.With fulldisclosure, it becomes the responsibility ofthe investor to choose whether the cost of theinvestment is worth the risk. Sometimes themanagers of a corporation are not completelyhonest in what they say about the business.When that happens, the government canprosecute them for breaking the law. Thescandal involving bankrupt energy companyEnron showed the damage that can be doneto investors when critical financial informa-tion is not reported by auditors.

Responsibilities to EmployeesOf course, businesses also have respon-

sibilities to employees. They are required

to give their workers a safe workplace and to treat all workers fairly and without discrimination. This means that they can-not treat employees differently on the basisof race, religion, color, gender, or age. The1990 Americans with Disabilities Actbarred employers from treating workersunfairly who had mental or physical disabil-ities. Some companies are recognized forworking hard to meet the needs of theiremployees. Johnson & Johnson, which

©The New Yorker collection 1992 Dana Fradon from cartoonbank.com. All rights reserved.


Checking for Understanding1. Key Terms Write a paragraph

relating to the social responsibil-ity of businesses using the fol-lowing terms: discrimination,transparency.

Reviewing Main Ideas 2. Describe What does the

Americans with Disabilities Actstate?

3. Explain Why is it important forcorporations to publish theirfinancial information regularly?

Critical Thinking 4. Making Judgments Do you

think “truth-in-advertising” lawsshould be strengthened?Explain.

5. Organizing Information On adiagram like the one below, identify as many of the respon-sibilities of businesses to consumers as you can.

Analyzing Visuals6. Interpret Study the cartoon on

page 493. Who are the figuresin the cartoon?

makes baby and health care products, takesan active role in fulfilling its responsibilitiesto its employees. Latina and Working Mothermagazines cite Johnson & Johnson as one ofthe best U.S. companies in this area.

Workers at the retail company TheContainer Store are enthusiastic about goodpay and first-rate benefits, and they believethey are a valued part of the company—in asurvey 94 percent of the employees feel theymake a difference.

Responsibilities to the CommunityMore and more businesses are empha-

sizing their social responsibility—theobligation they have to pursue goals thatbenefit society as well as themselves. Giftsto charities are one example of how busi-nesses meet this social responsibility. Manybusinesses take an active role in meetingthe needs of their communities.

The retail store Target, for example,promotes programs of community andnational volunteering. These projects rangefrom delivering food for Meals on Wheelsto cleaning up playgrounds and shores. In2003, Target donated more than $27 mil-lion to support education in the form ofscholarships, grants, and other programs.

American Express has built a traditionof responding to emergencies and provid-ing assistance to disaster victims throughgrants to relief agencies. Another significantcompany program involves raising publicawareness of historical and environmentalpreservation. American Express also fundsa variety of performing arts, including chil-dren’s theaters.

Defining What isdiscrimination?

Reuters NewMedia Inc./CORBIS

�BE AN ACTIVE CITIZEN�7. Analyze Contact a local busi-

ness and ask how the businesscontributes to the community.Describe the actions of the busi-ness and what you think theeffects are. Share your findingswith the class.

Responsibilities to Consumers

Social Responsibility Responsible companiesprovide help to organizations that help victimsof disasters. What is social responsibility?

SECTION ASSESSMENTStudy Central TM To review this section, go to

and click on Study CentralTM.civ.glencoe.com

491-497 U6 CH22 S3 CT-874574 9/29/05 3:34 PM Page 494

civ.glencoe.com

495

1. Why does Breaux think PRAs are safe? 2. Why does Jackson oppose PRAs?

3. This issue will affect the taxes you’ll beasked to pay. What questions would youneed answered before deciding whether youare for or against PRAs?

A Social Security card

Should the Government CreatePersonal Retirement Accounts?

The Social Security system works on a pay-as-you-goplan. Payroll taxes go into a trust fund, which is used topay the benefits for current retirees. However, the num-ber of retirees is growing faster than the number of peo-ple paying taxes to support them.

Many people predict that Social Security payments willexceed tax revenues by 2017. They also think the systemwill go broke by 2041.

In order to solve the problem, the federal governmentmust increase the program’s income (raise taxes),decrease its expenses (reduce benefits), or find a newsource of funding to supplement the system. Some sup-port the creation of personal retirement accounts (PRAs).This plan would allow workers to invest a percentage oftheir payroll taxes in stocks, bonds, or funds. Are PRAs asolution to the Social Security problems?

People say fix Social Security, but don’t reducemy benefits; fix Social Security, but don’t increasemy taxes; fix Social Security, but don’t increasemy age eligibility. That’s a pretty big challenge.

One of the things a commission that I servedon recommended was individual retirementaccounts; carve out 2% of the payroll tax to allowpeople to invest. The stock market has never hada 20-year negative return. . . . The baby boomersare already in fact experienced in investing.

—former Louisiana Senator John Breaux,former chairman,

Special Committee on Aging, 2001

Privatization would add huge costs to SocialSecurity, because any scheme has to pay fullbenefits to boomers who are about to retirewhile also prefunding the private accounts ofyounger workers. To pay for these costs, anyprivatization plan would require deep cuts inbenefits, increases in the retirement age and adramatic increase in insecurity. . . .

In exchange, . . . what do we get? We get achance to gamble on the stock market withmoney needed to create a secure floor underour families.

—Jesse Jackson, founder, Rainbow Coalitionand Operation PUSH, 2001

Bettmann/CORBIS

Debating the IssueDebating the Issue

491-497 U6 CH22 S3 CT-874574 9/29/05 3:35 PM Page 495

Section 2• A labor union is an organization of workers

formed to represent its members’ interests.• Unions participate in collective bargaining

when they negotiate with management.

Using Your Foldables Study OrganizerYour completed foldable should havethree labeled tabs with informationwritten under each tab. On the last tabof your foldable, write one question or concept that you would like toinvestigate further. Research and writethe information you find under the tab.

496

Section 1• Sole proprietorships are

small, easy-to-manageenterprises owned by oneperson.

• Partnerships are ownedby two or more persons.

• Corporations are ownedby shareholders.

Reviewing Key TermsWrite the key term that matches each definitionbelow.

1. a business that is owned by one individual

2. the stage in contract negotiations in which aneutral person tries to get both sides toreach an agreement

3. union and management submit issues onwhich they cannot agree to a third party for a final decision

4. one of the owners of a corporation

5. a situation that occurs when managementprevents workers from returning to work untilthey agree to a new contract

6. the legal responsibility of corporations torelease financial information regularly

7. union arrangement that hires only unionmembers

8. a nonprofit association that performs some economic activity for the benefit of its members

9. the deliberate refusal to work by workers

10. the process of negotiations between unionand management representatives

Reviewing Main Ideas11. What is the most common form of business

organization?

12. What are the disadvantages of a sole proprietorship?

13. Which type of business organization accountsfor the smallest proportion of sales?

14. What is unlimited liability?

15. What is the structure of every corporation?

16. Which group within a corporation chooses the board of directors?

17. Identify the purpose of cooperatives.

18. What are craft unions?

19. What kind of workers make up an industrialunion?

Section 3• Businesses have a

responsibility totheir customers toprovide safe,working products.

• Businesses havean obligation topursue goals thatbenefit society asa whole, as well as themselves.

491-497 U6 CH22 S3 CT-860970 12/8/03 10:11 PM Page 496

(t)James P. Dwyer/Stock Boston, (b)Stephen Frisch/Stock Boston

Critical Thinking20. Drawing Conclusions Why would a person

decide to be part of a partnership ratherthan a sole proprietorship?

21. Making Comparisons Create a table likethe one below and indicate the single mostimportant advantage that you believe thisform of business organization has.

Practicing Skills 22. Making Generalizations Read the follow-

ing excerpt, then make a generalizationbased on the reading.

Henry Ford introduced the firstmoving assembly line in 1913 at hisModel T plant in Highland Park, Michigan.Different conveyor systems carriedsubcomponents to the main assemblyline in a finely orchestrated manner.Before the advent of the assembly line, a Model T took more than 12 hours toproduce and cost $950. By 1927, afternumerous refinements, Model Ts werebeing turned out in less than half thattime, with a price tag of $290 apiece.

—Business Week: “100 Years ofInnovation,” Summer 1999

23. Work in small groups to draw up a report ona sole proprietorship and a partnership inyour community. Include in your reports suchinformation as goods and services provided;number of factories, stores, or offices; num-ber of employees; and so on. Conclude yourreport with observations on whether thebusinesses chose the most appropriateform of organization for their operations.

Analyzing Visuals24. In states that have right to-work laws, new

workers have the choice to join or not tojoin a union. Study the map on page 487. Isthe Northeast a stronger region for right-to-work laws than the Southeast? Explain.

Technology Activity25. Congress set out to protect small busi-

nesses by passing the Small Business Act. This act set up the Small BusinessAdministration. Visit the SBA athttp://www.sba.gov/. How does the SBA help small businesses?

Self-Check Quiz Visit the Civics Today Web site atciv.glencoe.com and click on Self-Check Quizzes—Chapter 22 to prepare for the chapter test.

Standardized Test Practice

Directions: Choose the bestanswer to the following question.

How do right-to-work laws affect workerswho do not belong to unions?F These laws force workers to join unions.G They affect only workers who belong to

craft unions.H They are an essential part of collective

bargaining.J They protect the right of the worker to

continue working at a job withoutjoining a union.

Test-Taking TipThis question requires you to know the

definition of right-to-work. Even if you areunsure of the phrase’s meaning, try todetermine the definition. Which answer

fits best with this information?


Business Organization Advantage

Sole Proprietorship

Partnership

Corporation

491-497 U6 CH22 S3 CT-860970 12/8/03 10:12 PM Page 497

http://civ.glencoe.comhttp://www.sba.gov/

Civics Today: Citizenship, Economics, & YouTable of ContentsPreviewing Your TextbookScavenger HuntNational Geographic Reference AtlasUnited States: PoliticalWorld: PoliticalUnited States 2000 Congressional Reapportionment

Reading Skills HandbookIdentifying Words and Building VocabularyReading for a ReasonUnderstanding What You ReadThinking About Your ReadingUnderstanding Text StructureReading for Research

Be an Active ReaderBe an Active CitizenWhy Study Civics?Unit 1: Foundations of American CitizenshipChapter 1: Citizenship and Government in a DemocracySection 1: Government of the People, by the People, for the PeopleSection 2: The Path to CitizenshipSection 3: The Diversity of AmericansChapter 1 Assessment & Activities

Chapter 2: Roots of American DemocracySection 1: Our English HeritageSection 2: The Birth of a Democratic NationSection 3: The Nation's First GovernmentsThe Declaration of IndependenceChapter 2 Assessment & Activities

Chapter 3: The ConstitutionSection 1: The Road to the ConstitutionSection 2: Creating and Ratifying the ConstitutionThe Constitution of the United StatesSection 3: The Structure of the ConstitutionSection 4: Principles Underlying the ConstitutionChapter 3 Assessment & Activities

Chapter 4: The Bill of RightsSection 1: The First AmendmentSection 2: Other Guarantees in the Bill of RightsSection 3: Extending the Bill of RightsSection 4: The Civil Rights StruggleChapter 4 Assessment & Activities

Chapter 5: The Citizen and the CommunitySection 1: The Duties and Responsibilities of CitizenshipSection 2: Volunteering in Your CommunityChapter 5 Assessment & Activities

Unit 2: The National GovernmentChapter 6: CongressSection 1: How Congress Is OrganizedSection 2: The Powers of CongressSection 3: Representing the PeopleSection 4: How a Bill Becomes a LawChapter 6 Assessment & Activities

Chapter 7: The President and the Executive BranchSection 1: The President and Vice PresidentSection 2: The President's JobSection 3: Making Foreign PolicySection 4: Presidential Advisers and Executive AgenciesChapter 7 Assessment & Activities

Chapter 8: The Judicial BranchSection 1: The Federal Court SystemSection 2: How Federal Courts Are OrganizedSection 3: The United States Supreme CourtSection 4: Deciding Cases at the Supreme CourtChapter 8 Assessment & Activities

Unit 3: Political Parties and Interest GroupsChapter 9: Political Parties and PoliticsSection 1: Development of American Political PartiesSection 2: Organization of American Political PartiesSection 3: Role of Political Parties TodayChapter 9 Assessment & Activities

Chapter 10: Voting and ElectionsSection 1: Who Can Vote?Section 2: Election CampaignsSection 3: Paying for Election CampaignsChapter 10 Assessment & Activities

Chapter 11: Influencing GovernmentSection 1: Public OpinionSection 2: The Mass MediaSection 3: Interest GroupsChapter 11 Assessment & Activities

Unit 4: State and Local GovernmentChapter 12: State GovernmentSection 1: The Federal SystemSection 2: The State Legislative BranchSection 3: The State Executive BranchSection 4: The State Judicial BranchChapter 12 Assessment & Activities

Chapter 13: Local GovernmentSection 1: City GovernmentSection 2: County GovernmentsSection 3: Towns, Townships, and VillagesChapter 13 Assessment & Activities

Chapter 14: Dealing With Community IssuesSection 1: How a Community Handles IssuesSection 2: Education and Social IssuesSection 3: Environmental IssuesChapter 14 Assessment & Activities

Unit 5: The Individual, the Law, and the InternetChapter 15: Legal Rights and ResponsibilitiesSection 1: The Sources of Our LawsSection 2: Types of LawsSection 3: The American Legal SystemChapter 15 Assessment & Activities

Chapter 16: Civil and Criminal LawSection 1: Civil CasesSection 2: Criminal CasesSection 3: Young People and the CourtsChapter 16 Assessment & Activities

Chapter 17: Citizenship and the InternetSection 1: Civic ParticipationSection 2: Challenges for DemocracySection 3: Regulating the InternetChapter 17 Assessment & Activities

Unit 6: The Economy and the IndividualChapter 18: What Is Economics?Section 1: The Fundamental Economic ProblemSection 2: Making Economic DecisionsSection 3: Being an Economically Smart CitizenChapter 18 Assessment & Activities

Chapter 19: The American EconomySection 1: Economic ResourcesSection 2: Economic Activity and ProductivitySection 3: Capitalism and Free EnterpriseSection 4: The Economy and YouChapter 19 Assessment & Activities

Chapter 20: DemandSection 1: What Is Demand?Section 2: Factors Affecting DemandChapter 20 Assessment & Activities

Chapter 21: SupplySection 1: What Is Supply?Section 2: Factors Affecting SupplySection 3: Markets and PricesChapter 21 Assessment & Activities

Chapter 22: Business and LaborSection 1: Types of BusinessesSection 2: Labor UnionsSection 3: Businesses in Our EconomyChapter 22 Assessment & Activities

Unit 7: The Free Enterprise SystemChapter 23: Government and the EconomySection 1: The Role of GovernmentSection 2: Measuring the EconomySection 3: Government, the Economy, and YouChapter 23 Assessment & Activities

Chapter 24: Money and BankingSection 1: What Is Money?Section 2: The Federal Reserve SystemSection 3: How Banks OperateChapter 24 Assessment & Activities

Chapter 25: Government FinancesSection 1: The Federal GovernmentSection 2: State and Local GovernmentsSection 3: Managing the EconomyChapter 25 Assessment & Activities

Unit 8: The United States and the WorldChapter 26: Comparing Economic SystemsSection 1: International Trade and Its BenefitsSection 2: Economic SystemsSection 3: Economies in TransitionChapter 26 Assessment & Activities

Chapter 27: Comparing Systems of GovernmentSection 1: Types of GovernmentSection 2: A Profile of Great BritainSection 3: A Profile of ChinaChapter 27 Assessment & Activities

Chapter 28: An Interdependent WorldSection 1: Global DevelopmentsSection 2: The United NationsSection 3: Democracy and Human RightsChapter 28 Assessment & Activities

AppendixWhat Is an Appendix and How Do I Use One?Honoring AmericaCareers HandbookGovernment and Economics Data BankUnited States FactsPresidents of the United StatesDocuments of American HistorySupreme Court Case SummariesGlossarySpanish GlossaryIndexAcknowledgments

Feature ContentsTIMETIME Political CartoonsTIME Teens in ActionTIME An Inside Look At...

Fact Fiction FolkloreStreet Law™: The Law and YouAmerican BiographiesSkillbuilderCritical ThinkingCitizenshipTechnology

Issues to DebateEconomics and YouDocuments of American HistoryLandmark Supreme Court Case StudiesCharts, Graphs, and MapsCharts and GraphsMaps

Student WorkbooksActive Reading Note-Taking Guide - Student EditionChapter 1: Citizenship and Government in a DemocracySection 1: Government of the People, by the People, for the PeopleSection 2: The Path to CitizenshipSection 3: The Diversity of Americans

Chapter 2: Roots of American DemocracySection 1: Our English HeritageSection 2: The Birth of a Democratic NationSection 3: The Nation's First Governments

Chapter 3: The ConstitutionSection 1: The Road to the ConstitutionSection 2: Creating and Ratifying the ConstitutionSection 3: The Structure of the ConstitutionSection 4: Principles Underlying the Constitution

Chapter 4: The Bill of RightsSection 1: The First AmendmentSection 2: Other Guarantees in the Bill of RightsSection 3: Extending the Bill of RightsSection 4: The Civil Rights Struggle

Chapter 5: The Citizen and the CommunitySection 1: The Duties and Responsibilities of CitizenshipSection 2: Volunteering in Your Community

Chapter 6: CongressSection 1: How Congress Is OrganizedSection 2: The Powers of CongressSection 3: Representing the PeopleSection 4: How a Bill Becomes a Law

Chapter 7: The President and the Executive BranchSection 1: The President and Vice PresidentSection 2: The President's JobSection 3: Making Foreign PolicySection 4: Presidential Advisers and Executive Agencies

Chapter 8: The Judicial BranchSection 1: The Federal Court SystemSection 2: How Federal Courts Are OrganizedSection 3: The United States Supreme CourtSection 4: Deciding Cases at the Supreme Court

Chapter 9: Political Parties and PoliticsSection 1: Development of American Political PartiesSection 2: Organization of American Political PartiesSection 3: Role of Political Parties Today

Chapter 10: Voting and ElectionsSection 1: Who Can Vote?Section 2: Election CampaignsSection 3: Paying for Election Campaigns

Chapter 11: Influencing GovernmentSection 1: Public OpinionSection 2: The Mass MediaSection 3: Interest Groups

Chapter 12: State GovernmentSection 1: The Federal SystemSection 2: The State Legislative BranchSection 3: The State Executive BranchSection 4: The State Judicial Branch

Chapter 13: Local GovernmentSection 1: City GovernmentSection 2: County GovernmentsSection 3: Towns, Townships, and Villages

Chapter 14: Dealing With Community IssuesSection 1: How a Community Handles IssuesSection 2: Education and Social IssuesSection 3: Environmental Issues

Chapter 15: Legal Rights and ResponsibilitiesSection 1: The Sources of Our LawsSection 2: Types of LawsSection 3: The American Legal System

Chapter 16: Civil and Criminal LawSection 1: Civil CasesSection 2: Criminal CasesSection 3: Young People and the Courts

Chapter 17: Citizenship and the InternetSection 1: Civic ParticipationSection 2: Challenges for DemocracySection 3: Regulating the Internet

Chapter 18: What Is Economics?Section 1: The Fundamental Economic ProblemSection 2: Making Economic DecisionsSection 3: Being an Economically Smart Citizen

Chapter 19: The American EconomySection 1: Economic ResourcesSection 2: Economic Activity and ProductivitySection 3: Capitalism and Free EnterpriseSection 4: The Economy and You

Chapter 20: DemandSection 1: What Is Demand?Section 2: Factors Affecting Demand

Chapter 21: SupplySection 1: What Is Supply?Section 2: Factors Affecting SupplySection 3: Markets and Prices

Chapter 22: Business and LaborSection 1: Types of BusinessesSection 2: Labor UnionsSection 3: Businesses in Our Economy

Chapter 23: Government and the EconomySection 1: The Role of GovernmentSection 2: Measuring the EconomySection 3: Government, the Economy, and You

Chapter 24: Money and BankingSection 1: What Is Money?Section 2: The Federal Reserve SystemSection 3: How Banks Operate

Chapter 25: Government FinancesSection 1: The Federal GovernmentSection 2: State and Local GovernmentsSection 3: Managing the Economy

Chapter 26: Comparing Economic SystemsSection 1: International Trade and Its BenefitsSection 2: Economic SystemsSection 3: Economies in Transition

Chapter 27: Comparing Systems of GovernmentSection 1: Types of GovernmentSection 2: A Profile of Great BritainSection 3: A Profile of China

Chapter 28: An Interdependent WorldSection 1: Global DevelopmentsSection 2: The United NationsSection 3: Democracy and Human Rights

Haitian Creole SummariesChapit 1: Sitwayènte ak Gouvènman nan yon DemokrasiChapit 2: Rasin Demokrasi Ameriken anChapit 3: Konstitisyon anChapit 4: "Bill of Rights" laChapit 5: Sitwayen an ak Kominote aChapit 6: Kongrè aChapit 7: Prezidan an ak Branch Egzekitif laChapit 8: Branch Jidisyè aChapit 9: Pati Politik ak PolitikChapit 10: Vòt ak EleksyonChapit 11: Enfliyans Gouvènman anChapit 12: Gouvènman Deta aChapit 13: Gouvènman LokalChapit 14: Okipe Pwoblèm Kominote aChapit 15: Dwa ak Responsabilite devan LalwaChapit 16: Lwa Sivil ak KriminèlChapit 17: Sitwayènte ak Entènet laChapit 18: Ki sa yo rele Syans Ekonomik?Chapit 19: Ekonomi Ameriken anChapit 20: DemannChapit 21: Of laChapit 22: Biznis ak TravayChapit 23: Gouvènman an ak Ekonomi anChapit 24: Lajan ak Operasyon BankèChapit 25: Finans GouvènmanChapit 26: Konpare Plizyè Sistèm EkonomikChapit 27: Konpare Plizyè Sistèm GouvènmanChapit 28: Yon Monn Entèdepandan

Reading Essentials and Study Guide - Student EditionChapter 1: Citizenship and Government in a DemocracySection 1: Government of the People, by the People, for the PeopleSection 2: The Path to CitizenshipSection 3: The Diversity of Americans

Chapter 2: Roots of American DemocracySection 1: Our English HeritageSection 2: The Birth of a Democratic NationSection 3: The Nation's First Governments

Chapter 3: The ConstitutionSection 1: The Road to the ConstitutionSection 2: Creating and Ratifying the ConstitutionSection 3: The Structure of the ConstitutionSection 4: Principles Underlying the Constitution

Chapter 4: The Bill of RightsSection 1: The First AmendmentSection 2: Other Guarantees in the Bill of RightsSection 3: Extending the Bill of RightsSection 4: The Civil Rights Struggle

Chapter 5: The Citizen and the CommunitySection 1: The Duties and Responsibilities of CitizenshipSection 2: Volunteering in Your Community

Chapter 6: CongressSection 1: How Congress Is OrganizedSection 2: The Powers of CongressSection 3: Representing the PeopleSection 4: How a Bill Becomes a Law

Chapter 7: The President and the Executive BranchSection 1: The President and Vice PresidentSection 2: The President's JobSection 3: Making Foreign PolicySection 4: Presidential Advisers and Executive Agencies

Chapter 8: The Judicial BranchSection 1: The Federal Court SystemSection 2: How Federal Courts Are OrganizedSection 3: The United States Supreme CourtSection 4: Deciding Cases at the Supreme Court

Chapter 9: Political Parties and PoliticsSection 1: Development of American Political PartiesSection 2: Organization of American Political PartiesSection 3: Role of Political Parties Today

Chapter 10: Voting and ElectionsSection 1: Who Can Vote?Section 2: Election CampaignsSection 3: Paying for Election Campaigns

Chapter 11: Influencing GovernmentSection 1: Public OpinionSection 2: The Mass MediaSection 3: Interest Groups

Chapter 12: State GovernmentSection 1: The Federal SystemSection 2: The State Legislative BranchSection 3: The State Executive BranchSection 4: The State Judicial Branch

Chapter 13: Local GovernmentSection 1: City GovernmentSection 2: County GovernmentsSection 3: Towns, Townships, and Villages

Chapter 14: Dealing With Community IssuesSection 1: How a Community Handles IssuesSection 2: Education and Social IssuesSection 3: Environmental Issues

Chapter 15: Legal Rights and ResponsibilitiesSection 1: The Sources of Our LawsSection 2: Types of LawsSection 3: The American Legal System

Chapter 16: Civil and Criminal LawSection 1: Civil CasesSection 2: Criminal CasesSection 3: Young People and the Courts

Chapter 17: Citizenship and the InternetSection 1: Civic ParticipationSection 2: Challenges for DemocracySection 3: Regulating the Internet

Chapter 18: What Is Economics?Section 1: The Fundamental Economic ProblemSection 2: Making Economic DecisionsSection 3: Being an Economically Smart Citizen

Chapter 19: The American EconomySection 1: Economic ResourcesSection 2: Economic Activity and ProductivitySection 3: Capitalism and Free EnterpriseSection 4: The Economy and You

Chapter 20: DemandSection 1: What Is Demand?Section 2: Factors Affecting Demand

Chapter 21: SupplySection 1: What Is Supply?Section 2: Factors Affecting SupplySection 3: Markets and Prices

Chapter 22: Business and LaborSection 1: Types of BusinessesSection 2: Labor UnionsSection 3: Businesses in Our Economy

Chapter 23: Government and the EconomySection 1: The Role of GovernmentSection 2: Measuring the EconomySection 3: Government, the Economy, and You

Chapter 24: Money and BankingSection 1: What Is Money?Section 2: The Federal Reserve SystemSection 3: How Banks Operate

Chapter 25: Government FinancesSection 1: The Federal GovernmentSection 2: State and Local GovernmentsSection 3: Managing the Economy

Chapter 26: Comparing Economic SystemsSection 1: International Trade and Its BenefitsSection 2: Economic SystemsSection 3: Economies in Transition

Chapter 27: Comparing Systems of GovernmentSection 1: Types of GovernmentSection 2: A Profile of Great BritainSection 3: A Profile of China

Chapter 28: An Interdependent WorldSection 1: Global DevelopmentsSection 2: The United NationsSection 3: Democracy and Human Rights

Spanish Reading Essentials and Study Guide - Student EditionCapítulo 1: La ciudadanía y el gobierno en una democraciaSección 1: Gobierno del pueblo, por el pueblo y para el puebloSección 2: El camino a la ciudadaníaSección 3: La diversidad de los estadounidenses

Capítulo 2: Las raíces de la democracia estadounidensesSección 1: Nuestra herencia inglesaSección 2: El nacimiento de una nación democráticaSección 3: Los primeros gobiernos de la nación

Capítulo 3: La ConstituciónSección 1: El camino a la ConstituciónSección 2: La creación y la ratificación de la ConstituciónSección 3: La estructura de la ConstituciónSección 4: Los principios de la Constitución

Capítulo 4: La Declaración de DerechosSección 1: La Primera EnmiendaSección 2: Otras garantías de la Declaración de DerechosSección 3: Ampliación de la Declaración de DerechosSección 4: La lucha por los derechos civiles

Capítulo 5: El ciudadano y la comunidadSección 1: Los deberes y las responsabilidades de la ciudadaníaSección 2: El trabajo voluntario en tu comunidad

Capítulo 6: El gobierno nacionalSección 1: Cómo está organizado el CongresoSección 2: Las facultades del CongresoSección 3: La representación del puebloSección 4: Cómo se convierte en ley un proyecto legislativo

Capítulo 7: El presidente y el poder ejecutivoSección 1: El presidente y el vicepresidenteSección 2: El trabajo del presidenteSección 3: La política exteriorSección 4: Los consejeros presidenciales y las dependencias del ejecutivo

Capítulo 8: El poder judicialSección 1: El sistema de tribunales federalesSección 2: Cómo están organizados los tribunales federalesSección 3: La Corte Suprema de Estados UnidosSección 4: Cómo se deciden los casos en la Corte Suprema

Capítulo 9: Los partidos políticos y la políticaSección 1: Surgimiento de los partidos políticos estadounidensesSección 2: Organización de los partidos políticos estadounidensesSección 3: Función de los partidos políticos en la actualidad

Capítulo 10: Votación y eleccionesSección 1: ¿Quién puede votar?Sección 2: Campañas electoralesSección 3: Cómo se pagan las campañas electorales

Capítulo 11: Influencias del gobiernoSección 1: La opinión públicaSección 2: Los medios de comunicaciónSección 3: Los grupos de presión

Capítulo 12: El gobierno estatalSección 1: El sistema federalSección 2: El poder legislativo estatalSección 3: El poder ejecutivo estatalSección 4: El poder judicial estatal

Capítulo 13: Gobierno localSección 1: El gobierno municipalSección 2: Gobiernos condalesSección 3: Pueblos, municipios y poblaciones

Capítulo 14: Soluciones para las comunidadesSección 1: Cómo maneja sus asuntos una comunidadSección 2: Asuntos educativos y socialesSección 3: Asuntos ambientales

Capítulo 15: Derechos y responsabilidades legalesSección 1: El origen de nuestras leyesSección 2: Clases de derechoSección 3: El sistema legal estadounidense

Capítulo 16: Derecho civil y penalSección 1: Casos civilesSección 2: Casos penalesSección 3: Los menores de edad y los tribunales

Capítulo 17: La ciudadanía y la InternetSección 1: La participación cívicaSección 2: Retos de la democraciaSection 3: Regulación de internet

Capítulo 18: La economía y el individuoSección 1: El problema económico fundamentalSección 2: Las decisiones económicasSección 3: Cómo ser un ciudadano que sabe economía

Capítulo 19: La economía estadounidenseSección 1: Recursos económicosSección 2: Actividad económica y productividadSección 3: Capitalismo y libre empresaSección 4: La economía y tú

Capítulo 20: La demandaSección 1: Qué es la demandaSección 2: Factores que influyen en la demanda

Capítulo 21: OfertaSección 1: Qué es la ofertaSección 2: Factores que influyen en la ofertaSección 3: Mercados y precios

Capítulo 22: Empresas y TrabajadoresSección 1: Clases de empresasSección 2: Sindicatos de trabajadoresSección 3: Las empresas en nuestra economía

Capítulo 23: El gobierno y la economíaSección 1: El papel del gobiernoSección 2: Cómo se mide la economíaSección 3: El gobierno, la economía y tú

Capítulo 24: El dinero y los bancosSección 1: Qué es el dineroSección 2: El sistema de la Reserva FederalSección 3: Cómo funcionan los bancos

Capítulo 25: Finanzas del gobiernoSección 1: El gobierno federalSección 2: Gobiernos estatales y localesSección 3: El manejo de la economía

Capítulo 26: Comparación de sistemas económicosSección 1: El comercio internacional y sus ventajasSección 2: Sistemas económicosSección 3: Economías en transición

Capítulo 27: Comparación de sistemas de gobiernoSección 1: Clases de gobiernoSección 2: Un perfil de Gran BretañaSección 3: Un perfil de China

Capítulo 28: Un mundo interdependienteSección 1: Acontecimientos mundialesSección 2: La Organización de las Naciones UnidasSección 3: Democracia y derechos humanos

Spanish SummariesCapítulo 1: La ciudadanía y el gobierno en una democraciaCapítulo 2: Las raíces de la democracia estadounidensesCapítulo 3: La ConstituciónCapítulo 4: La Declaración de DerechosCapítulo 5: El ciudadano y la comunidadCapítulo 6: El gobierno nacionalCapítulo 7: El presidente y el poder ejecutivoCapítulo 8: El poder judicialCapítulo 9: Los partidos políticos y la políticaCapítulo 10: Votación y eleccionesCapítulo 11: Influencias del gobiernoCapítulo 12: El gobierno estatalCapítulo 13: Gobierno localCapítulo 14: Soluciones para las comunidadesCapítulo 15: Derechos y responsabilidades legalesCapítulo 16: Derecho civil y penalCapítulo 17: La ciudadanía y la InternetCapítulo 18: La economía y el individuoCapítulo 19: La economía estadounidenseCapítulo 20: La demandaCapítulo 21: OfertaCapítulo 22: Empresas y TrabajadoresCapítulo 23: El gobierno y la economíaCapítulo 24: El dinero y los bancosCapítulo 25: Finanzas del gobiernoCapítulo 26: Comparación de sistemas económicosCapítulo 27: Comparación de sistemas de gobiernoCapítulo 28: Un mundo interdependiente

Standardized Test Skills Practice Workbook - Student EditionActivity 1: Interpreting Charts and Tables Activity 2: Using Time LinesActivity 3: Interpreting Diagrams Activity 4: Identifying the Main Idea Activity 5: Interpreting a Visual Image Activity 6: Using a Bar Graph to Interpret Data Activity 7: Interpreting Graphs Activity 8: Interpreting Primary Sources Activity 9: Comparing and Contrasting Activity 10: Making Inferences Activity 11: Interpreting a Political Cartoon Activity 12: Persuasive Writing About an Issue Activity 13: Recognizing Point of View Activity 14: Forming Hypotheses Activity 15: Perceiving Cause-and-Effect RelationshipsActivity 16: Distinguishing Between Fact and NonfactActivity 17: Evaluating a Web SiteActivity 18: Making Decisions Activity 19: Predicting Outcomes Activity 20: Classifying Facts and DetailsActivity 21: Analyzing Graphs and TablesActivity 22: Constructing Bar Graphs to Analyze DataActivity 23: Interpreting and Evaluating EditorialsActivity 24: Outlining Information for WritingActivity 25: Analyzing Statistics to Draw ConclusionsActivity 26: Making Generalizations Activity 27: Recognizing Forms of Propaganda Activity 28: Reading a Special-Purpose Map

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