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Other Organizations

Other Organizations. Unit Five, Lesson Four Cook Economics. Some businesses don’t operate for profit’s sake. Other Organizations. Most businesses use scarce resources to produce goods and services in hopes of earning a profit for their owners

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Other Organizations

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  1. Other Organizations Unit Five, Lesson Four Cook Economics

  2. Some businesses don’t operate for profit’s sake.

  3. Other Organizations • Most businesses use scarce resources to produce goods and services in hopes of earning a profit for their owners • A nonprofit organization operates in a businesslike way to promote the collective interests of its members rather than to seek financial gain for its owners

  4. Types of Nonprofit Organizations • Community and Civic Organizations • Examples: schools, churches, hospitals, welfare groups, and adoption agencies • Provide goods and services to their members while they pursue other rewards (education, health, help, etc) • Use any surpluses of revenues to further the work of their institutions

  5. Churches don’t try to “profit”

  6. Types of Nonprofit Organizations • Cooperatives (or Co-ops) --Voluntary association of people formed to carry on some kind of economic activity that will benefit its members --Consumer cooperatives—buy bulk amounts of goods and services on behalf of its members—able to offer its members products at prices lower than those charged by regular businesses (EX: Sams Club or Costco)

  7. Boise Co-op – consumers run this for their own benefit

  8. Types of Nonprofit Organizations • Co-ops (cont.) • Service cooperatives—provides services to its members rather than goods (EX: credit unions) • Producer cooperatives—helps member producers promote or sell their products (EX: farming co-ops)

  9. Producers share warehouse space and work together

  10. Types of Nonprofit Organizations • Labor Unions • An organization of workers formed to represent its members’ interests in various employment matters • Participates in collective bargaining—negotiating with management over issues such as pay, working hours, etc

  11. Labor Unions rely on members to stand up for each other

  12. Types of Nonprofit Organizations • Professional Associations—a group of people in a specialized occupation that works to improve the working conditions, skill levels, and public perceptions of the profession • Business Associations—businesses collecting to promote their collective interests (EX: chamber of commerce or better business bureau)

  13. Professional Associations

  14. Government’s Role: • Direct Role—government becomes a player in the market—supplies a good or service that competes with private businesses (EX: U.S. Postal Service) • Indirect Role—government acts like an umpire to regulate market—regulates businesses that do not have much competition to make sure they are running fairly (EX—public utilities monitored by govt)

  15. Government direct role

  16. Government indirect role in economy

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