Splash Screen Chapter 3 Business Organizations

2 Section 3-1 Click the mouse button or press the Space Bar to display the information. Section 3 begins on page 75 of your textbook. Study Guide Main Idea Producer and worker cooperatives are associations in which the members join in production and marketing to lower costs for their members’ benefit.  Reading Strategy Graphic Organizer As you read the section, complete a graphic organizer similar to the one on page 75 of your textbook by describing the different kinds of cooperatives.

3 Section 3-2 Click the mouse button or press the Space Bar to display the information. Section 3 begins on page 75 of your textbook. Key Terms –cooperative  –co-op  –credit union  –labor union  –collective bargaining  –professional association  –chamber of commerce  –Better Business Bureau  –public utility –nonprofit organization  Study Guide (cont.)

4 Section 3-3 Click the Speaker button to listen to the Cover Story. Click the mouse button or press the Space Bar to display the information. Section 3 begins on page 75 of your textbook. Objectives After studying this section, you will be able to:  Applying Economic Concepts Nonprofit Organizations How do churches, clubs, or civic organizations fit into our economic system? Study Guide (cont.) –Describe nonprofit organizations.  –Explain the direct and indirect role of government in our economy. 

5 Section 3-4 Click the mouse button or press the Space Bar to display the information. Introduction Most businesses use scarce resources to produce goods and services in hopes of earning a profit for their owners.  Other organizations operate on a “not-for- profit” basis.  A nonprofit organization operates in a businesslike way to promote the collective interests of its members rather than to seek financial gain for its owners.

6 Section 3-4 Click the mouse button or press the Space Bar to display the information. Did You Know? The National Center for Charitable Statistics reported that nearly 1.5 million organizations had registered with the federal government in 1997 as tax-exempt, private nonprofit organizations. Because some organizations do not need to register with the Internal Revenue Service, this number does not include all types of nonprofit organizations described in Section 3. 

7 Section 3-5 Click the mouse button or press the Space Bar to display the information. Community and Civic Organizations A nonprofit organizations is in business to promote its members’ collective interests, not to seek financial gain.  Many nonprofit organizations incorporate to take advantage of a corporation’s unlimited life and limited liability  If the nonprofit organization has money after its expenses are paid, its board of directors may apply the surplus to other projects that further the organization’s mission.

8 Section 3-Assessment 1 Discussion Question How might a hospital’s board of directors decide to spend a year’s surplus? Answers will vary. Students should support their examples with how the product or service benefits a hospital’s mission of helping the sick. Click the mouse button or press the Space Bar to display the answer.

9 Section 3-6 Click the mouse button or press the Space Bar to display the information. Cooperatives A cooperative is voluntary association of people who carry on an economic activity that benefits its members.

10 Section 3-6 Click the mouse button or press the Space Bar to display the information. Cooperatives Consumer cooperatives buy food and other necessities in bulk. Members donate time to the co-op, and members pay lower prices for goods.  Service cooperatives, such as credit unions, offer services to its members at lower rates.  Producer cooperatives help members, such as farmers, promote or sell their products.

11 Section 3-Assessment 1 Discussion Question Why might a credit union member qualify for a car loan from the credit union in a shorter time than for a car loan from a dealer or a bank? The loan approval officer likely knows the member much better than the dealer or the banker does. Click the mouse button or press the Space Bar to display the answer.

12 Section 3-10 Click the mouse button or press the Space Bar to display the information. Labor, Professional, and Business Organizations Labor unions represent workers’ interest and negotiate with management through collective bargaining..  Professional associations set standards for those in the profession and influence government policies on issues concerning members’ interest.  Business associations are industries or trade associations that represent specific kinds of businesses. Some business associations, such as the Better Business Bureau, help protect the consumer.

13 Section 3-Assessment 1 Discussion Question The National Council for the Social Studies is a professional association for social studies teachers. What might it offer its members? Answers will vary, but students may indicate publications with social studies lesson plans, standards for social studies courses, and conferences for teachers. Click the mouse button or press the Space Bar to display the answer.

14 Section 3-15 Click the mouse button or press the Space Bar to display the information. Government Government plays a direct role in the economy when its agencies produce and distribute goods and services to consumers such as the Tennessee Valley Authority (electricity), and the U.S. Postal Service (stamps and mail delivery).  Government corporations have boards of directors, but Congress’s money rather than investor’s money supports their work.  Government plays an indirect role when it regulates public utilities or when it grants money to people in the form of Social Security and student financial aid.

15 Section 3-Assessment 1 Discussion Question National and local security come under the jurisdiction of the federal and local governments. How do national defense and local police protection directly and indirectly impact the economy? The labor and goods purchased to run a police department or support the military have a direct influence on the economy. Indirect influences include the expectation among citizens that their wealth and belonging will be protected. Click the mouse button or press the Space Bar to display the answer.

16 Section 3-Assessment 1 Section Assessment Main Idea Using your notes from the graphic organizer on page 75, describe the different types of cooperatives. consumer: buy goods in bulk/offer members reduced prices; service: provide service instead of goods; producer: help members promote/sell products Click the mouse button or press the Space Bar to display the answer.

17 Section 3-Assessment 2 Section Assessment (cont.) Click the mouse button or press the Space Bar to display the answer. Identify the purpose of the different types of nonprofit organizations. community/civic organizations: provide goods and services and promote a common good; cooperatives: carry on activities that benefit members; labor, professional, and business organizations: promote interests of members; government: regulate economy

18 Section 3-Assessment 3 Section Assessment (cont.) Click the mouse button or press the Space Bar to display the answer. Provide examples that illustrate the government’s direct and indirect roles as an economic institution. direct: police and fire protection, schools, court systems; indirect: regulation of public utilities and quasi- monopolies, subsidies

19 Section 3-Assessment 5 Section Assessment (cont.) Click the mouse button or press the Space Bar to display the answer. Classifying Information Make a list of 10 activities performed by your local government. Classify each as to its direct or indirect influences on the local economy. Lists should demonstrate an understanding of the economic roles of government.

20 Section 3-Assessment 6 Section Assessment (cont.) Click the mouse button or press the Space Bar to display the answer. Making Comparisons Why do many people prefer to deal with credit unions rather than banks? They can borrow at better rates.

21 Section 3-Assessment 7 Discuss which of the institutions examined in this section has the most impact on your life and why. Section Close

End of Section 3 Click the mouse button to return to the Contents slide.