Javier Carriedo Veronica Peron Emely Garcia Period. 6.
Transcript of Javier Carriedo Veronica Peron Emely Garcia Period. 6.
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?