1. E. Napp Other Organizations In this lesson, students will be able to identify characteristics of franchises, cooperatives, and nonprofit organizations. Students will be able to identify and/or define the following terms: Franchise Cooperative Nonprofit Organization

2. E. Napp When you visit your local Ben and Jerry’s, you are visiting a franchise.

3. E. Napp Franchise A franchise is a semi-independent business. The owner of a franchise pays a fee to a parent company in exchange for the right to sell the parent company’s products. The owner of the franchise must conform to the parent company’s rules.

4. E. Napp Many familiar restaurants are franchises.

5. E. Napp Cooperative A cooperative is a business owned and operated by a group of people for their shared benefit. There are consumer cooperatives, service cooperatives, and producer cooperatives. Only members of the cooperative can enjoy the benefits of the cooperative.

6. E. Napp Farmers frequently form cooperatives to sell their products.

7. E. Napp Nonprofit Organization A nonprofit organization is a business that does not operate for profits. Nonprofit organizations serve society. The American Red Cross is an example of a nonprofit organization.

8. E. Napp The American Red Cross is a nonprofit organization.

9. E. Napp There are many different forms of business organizations in the United States.

10. E. Napp The Most Common Forms Sole proprietorships, partnerships, and corporations are the most common forms of business organizations in the United States. However, there are other types of business organizations. It is important to understand the different types of business organizations.

11. E. Napp Microsoft is a corporation but not every business is a corporation.

12. E. Napp Nonprofit organizations serve society.

13. E. Napp All businesses are in the business of serving customers.

14. E. Napp Questions for Reflection: Why must the owner of a franchise pay a fee to a parent company? Provide three examples of franchises. What is a cooperative? Why must a person be a member of a cooperative to benefit from the cooperative’s services? Why are nonprofit organizations in the business of serving society?