CH 3 ECON

Sole Proprietorships

Owned by one person, easy to start, but with unlimited liability.

Partnerships

Jointly owned, shared responsibility, but with shared liabilities.

Corporations

Separate legal entities with limited liability for owners but face double taxation.

Horizontal Mergers

 Firms producing similar products combine

Vertical Mergers

Businesses in different stages of production unite

Conglomerates

 Firms owning multiple unrelated businesses

Nonprofit Organization

An organization that operates for collective interests rather than for profit, focusing on serving the public or specific community needs.

Cooperative

A business owned and operated by a group of individuals for their mutual benefit, usually providing services or goods to its members at lower costs.

Consumer Cooperatives

Owned and operated by consumers who use their services, such as grocery co-ops, where members purchase goods at lower prices.

Service Cooperatives

Provide services to their members rather than goods, such as healthcare co-ops or utility co-ops that deliver essential services.

Producer Cooperatives

Owned by producers, such as farmers, who band together to process and market their products, improving bargaining power and reducing costs.

Worker Cooperatives

Owned and managed by the employees, allowing them to have a direct say in their working conditions and share in the profits of the business.

Credit Union

A nonprofit financial institution owned by its members, which provides various financial services such as savings accounts and loans, usually at more favorable rates than traditional banks.

Labor Union

An organization that represents workers in negotiations with employers concerning wages, working conditions, and other employment issues.

Collective Bargaining

The process by which labor unions and employers negotiate the terms of employment, including wages, hours, and working conditions.

Professional Association

An organization of individuals in a specific profession, which aims to promote the interests of its members and provide education, networking, and professional development opportunities.

Chamber of Commerce

A network of businesses in a specific area, created to advocate for the business community, provide networking opportunities, and support local economic development.

Better Business Bureau

A nonprofit organization that aims to enhance marketplace trust by providing information on businesses and fostering ethical business practices.

Public Utility

An organization that provides essential services such as water, electricity, or natural gas to the public, often regulated by government entities to ensure fair pricing and service quality.