Transcript Chapter 3 Business Organizations

Chapter 3
Business Organizations
Section 3
Nonprofit Organizations
Page 78
Nonprofit Organization
• Works in a business like way to promote the
collective interests of its members rather
than to seek financial gain for its owners
– American Red Cross
– Habitat for Humanity
– March of Dimes
Community Organizations
• Organizations including schools, churches,
hospitals, welfare groups, and adoption
agencies
– Do not issue stock
– Do not Pay dividends
– Do not pay income taxes
– Do USE scarce factors of production
Cooperatives
• A voluntary association formed to carry on some kind
of economy activity that will benefit its members
• Consumer Cooperative
– A voluntary organization that buys bulk amounts of goods
on behalf of its members
– Purpose is to offer its members prices lower than those
charged by regular business
• Service Cooperative
– Provides services such as insurance, credit, or child care to
its members
– Credit Union
Cooperatives
• A voluntary association formed to carry on some
kind of economy activity that will benefit its
members
• Producer cooperative
– Helps members produce or sell their products
– Most cooperatives of this king are made up of farmers
Labor Unions
• Organization of workers formed to represent its
members’ interests in various employment
matters
• Union participates in collective bargaining when it
negotiates with management over issues such as
pay, working hours, health care coverage,
vacations, and other job related matters
– AFL-CIO
– National Education Association
Professional Associations
Consists of people in a specialized occupation
interested in improving working conditions, skill
levels, and public perceptions of the profession
American Medical Association
American Bar Association
Business Associations
• Local Chamber of Commerce – promotes the
welfare of its members businesses
• Better Business Bureau – sponsored by local
business to provide general information on
companies, maintain records of consumer
inquires and complaints
Direct Role of Government
• When the government supplies a good or
service that competes with private business
– Tennessee Valley Authority (TVA)
– Federal Deposit Insurance Corporation (FDIC)
– U.S. Postal Service (USPS)
A big difference is that Congress supplies the funds
necessary to cover any losses the pubic
corporation may incur
Indirect Role of Government
• The government plays an indirect role when
it acts as an umpire to help the market
economy operate smoothly and efficiently
– Regulation of public utilities
– Social Security Checks
– Veterans benefits
– Financial aid to college students