Other Business Organizations Identify different business organizations in our economy Understand purpose of different business organizations in our economy

Nonprofit Organizations Operates to promote interests rather than make profit Ex: Schools, Churches, Welfare groups, Adoption agencies

Cooperatives Voluntary association of people formed to carry of economic activity benefiting its members Classes: Consumer Service Producer

Cooperatives How does a cooperative work? People pay a membership fee to help support the cooperative, which provides them with goods and services they need at a good price.

Cooperatives Create a three-column chart defining the three types of cooperatives and providing several examples of each. describe how and why cooperatives help the people who belong to them. include reasons people are willing to pay that fee

Why are cooperatives, such as health food cooperatives or credit unions, beneficial to people who live near them and are members? because they understand local needs and problems, are more responsive to the issues facing local residents, and look out for members’ interests.

Consumer Cooperative Buys bulk amounts if goods on behalf of its members Low costs for members due to hard work and volunteerism

Service Cooperative Provides insurance, credit and babysitting to members Ex: Credit Union

Producer Cooperatives Helps members promote or sell products Ex: Ocean Spray (Help farmers)

Labor, Professional, and Business Organizations Labor unions are nonprofit organizations that represent member interests in various employment matters. Professional associations consist of people in a specialized occupation who are interested in improving working conditions, skills, and public perceptions of the profession. Business associations are formed to promote the collective interests of the businesses.

Labor Unions Organization of workers formed to represent member’s interests of employment matters Issues include pay, working hours, health benefits

Textile workers Based on the photograph, what type of work did these women do? Why do you think owners of factories such as this one paid their workers by the piece, rather than by the hour? How would this type of payment affect workers? before unions, owners could dictate any conditions they wanted for their workers. Child labor, long hours, and often unsafe working conditions were the norm. Many factory owners posted this sign at their factories: “If you don’t come in Sunday, don’t come in Monday.”

Professional Associations Group of specialized occupation that works to improve condition and skills of employment EX: MEA (Michigan Education Association) AMA (American Medical Association)

Professional Associations How do professional associations help their members? Professional associations help their members by providing training, education, licensing, standards, networking, referrals, and other services such as insurance and lobbying for its members’ interests.

Government Local, state, and national governments function as nonprofit organizations. Government can play a direct or indirect role in the economy. Agencies that produce and distribute goods and services play a direct role. Indirect government actions include antitrust laws, college scholarships, and Social Security payments.

DO YOU KNOW?? Names of business organizations in our economy???