Presentation on theme: "Unit 4 Microeconomics: Business and Labor Chapters 8.4 Economics Mr. Biggs."— Presentation transcript:
Unit 4 Microeconomics: Business and Labor Chapters 8.4 Economics Mr. Biggs
Business Franchises Business franchise - A semi-independent business that pays fees to a parent company in return for the exclusive right to sell a certain product or service in a given area. For example, McDonald’s, 7-Eleven, Subway, Denny’s, etc. Advantages of Franchises Franchises provide training and support, standardized quality, national advertising, financial assistance and centralized buying power. Other Organizations
Disadvantages of Franchises Disadvantages of a franchises: High franchising fees and royalties Royalties - Share of earnings given as payment. Strict operating standards Purchasing restrictions (from suppliers) Limited product line Cooperative Organizations Cooperative or co-op - A business organization owned and operated by a group of individuals to obtain lower prices for their members. Co-ops fall into three categories: Consumer or purchasing Service Producer
Consumer Cooperatives Consumer cooperative - A retail outlet owned and operated by consumers. Members get goods at reduced prices, but may require membership fees. For example, Costco. Service Cooperatives A service cooperative provides a service rather than good. For example, legal services or banking.
Producer Cooperative Producer cooperative - An agricultural marketing cooperative that helps member sell their farm goods. This allows the farmers to focus on growing their crops. Nonprofit Organizations Nonprofit organizations - Institutions that function much like a business, but do not operate for the purpose of generating a profit. They are exempt from paying taxes and almost always provide a service. For example, museums, the Red Cross, GIA, and churches.
Professional Organizations Professional organizations - Nonprofits that work to improve the image, skill and working conditions of various occupations. For example, the National Education Association (NEA). Business Associations Business associations - Nonprofits that promote the business interests for a geographical area. For example, the Better Business Bureau BBB.
Trade Associations Trade associations - Nonprofits that promote the interests of a particular industry. Labor Unions Labor Unions - Organized group of workers who protect worker rights, improve wages, conditions, and benefits. For example, the San Diego Education Association.