Firms Firms range from single, part-time, 1 person operations to large multinational corporations. All firms must make a profit to stay in operation. Privately owned business must aim to be efficient and competitive.
Cooperatives These are business that are owned by their members, & are set up to directly benefit their members. There are 3 main types of cooperatives in NZ: Producer Cooperatives Consumer Cooperatives Savings Cooperatives
Producer Cooperatives The firm is owned by its suppliers. For example Fonterra is owned by the Dairy Farmers who own it. The advantages for a cooperatives' members are: Market for their output Sharing the profits from the processing of their output
Consumer Cooperatives Consumer cooperatives are rarer but are owned by the customers of the business, like a shop owned by its customers. Ex. Southern Cross Healthcare in NZ. Advantages are for members are: Lower Prices Share of Profits
Savings Cooperatives Like a bank in that it takes members savings & lend it out to other members in the form of loans. Ex. PSIS Advantages to members include: Cheaper Loans Secure deposits (Savings) Loans are made to people of similar interests
Voluntary Organisations These provide goods & services that are not normally provided by firms or the government. Not for Profit They include: Clubs & Societies, Churches & Charities.
Public Sector Central Government: Which Party is in Government? Who is our Prime Minister? Where is our parliament? What does the Government do? How does the government pay for the goods & services it provides? Local Government Who is your Mayor? What does local government do? How do they pay for the goods & services they provide?
Types of Producers Review: Hang your class with one of these! 1)NZ example of a Cooperative 2)A Good or Service provided by Central Govt 3)A NZ Firm 4)International & NZ Charity 5)Private Sector Producer