CHAPTER 8 SECTION 4OTHER

ORGANIZATIONS

Javier CarriedoVeronica Peron

Emely GarciaPeriod. 6

Business Franchise

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.

Parent companies are called franchisers.

Advantages of Franchises:

Management training and support

Standardized quality

National advertising programs

Financial assistance

Centralized buying power

Disadvantages of Franchises:

High franchising fees and royalties

Strict operating standards

Purchasing restrictions

Limited product line

Cooperative Organizations

Cooperative = a business organization owned and operated by a group of individuals for their mutual benefits.

Consumer Cooperative = retail outlet owned and operated by consumers.

Service Cooperative = cooperative that provides a service, rather than a good.

Producer Cooperative = agricultural marketing cooperative that helps members sell their products.

Nonprofit Organizations

Nonprofit Organization = institution that functions much like a business, but does not operate for the purpose of generating profits.

Professional Organization = nonprofit organization that works to improve the image, working conditions, and skill levels of people in particular occupations.

Business Associations = nonprofit that promotes collective business interest for a city, state, or other geographical area, or for a group of similar businesses.

Trade Association = nonprofit organization that promotes the interest of a particular industry.

Labor Unions = an organized group of workers whose aim is to improve working conditions, hours, wages, and fringe benefits.

QUIZ

1. Parent companies are called what?

2. What are two advantages of a franchise?

3.  What are two disadvantages of a franchise?

4.  What do service cooperative businesses provide? What don’t they provide?

5. What are two things that labor unions aim to improve?