ECONOMICS TOPIC 5 LESSON 4

ECONOMICS TOPIC 5 LESSON 4

Nonprofits

ESSENTIAL QUESTION

How can businesses and labor best achieve their goals?

Cooperatives

A cooperative is a business organization owned and operated by a group of individuals for their shared benefit.

characteristics

voluntary and open membership;

democratic control of the organization by its members;

sharing of contributions and benefits by members.

Consumer Cooperatives

Retail outlets owned and operated by consumers are called consumer cooperatives. They are also known as purchasing cooperatives. Consumer cooperatives sell merchandise to their members at reduced prices.

Open Ended

Analyze Charts How is being a member of a cooperative the same as being a stockholder in a corporation? How is it different?

Service Cooperatives

Cooperatives that provide a service rather than goods are called service cooperatives. Some service co-ops offer discounted insurance, banking services, healthcare, legal help, or baby-sitting services.

Producer Cooperatives

Producer cooperatives are agricultural marketing cooperatives that help members sell their products.

Multiple Choice

Apply Concepts If you were raising catfish on a farm in Mississippi, which type of cooperative might you join for marketing help?

• a purchasing cooperative

• a service cooperative

• a producer cooperative

• a consumer cooperative

Nonprofits

Some institutions function much like business organizations but do not operate for the purpose of generating profit. For that reason, they are called nonprofit organizations. Nonprofit organizations have no owner. They are often run by a board of directors. 

Professional Organizations

Some nonprofits are professional organizations that work to improve the image, working conditions, and skill levels of people in particular occupations.

Business Associations 

Organizations called business associations promote the collective business interests of a city, state, or other geographical area, or of a group of similar businesses.

Trade Associations

Nonprofit organizations that promote the interests of particular industries are called trade associations.

Labor Unions

A labor union is an organized group of workers whose aim is to improve working conditions, hours, wages, and fringe benefits for members.

Multiple Choice

Compare How are nonprofit organizations different from corporations?

• Nonprofits are exempt from income taxes.

• Nonprofits function like business organizations.

• Nonprofits are not subject to government regulation.

• Nonprofits do not make any profits.

Open Ended

How can businesses and labor best achieve their goals?