Other Business Structures

Examples of nonprofit institutions include organizations such as schools, churches, hospitals, welfare groups, and adoption agencies. Most of these organizations are legally incorporated to take advantage of unlimited life and limited liability. They are similar to profit-seeking businesses, but do not issue stock, pay dividends, or pay income taxes.

Their activities often produce revenues in excess of expenses, but they use the surplus to further the work of their institutions, not to pay dividends to shareholders. Their efforts are difficult to analyze economically, however, because the value of their products is not easy to measure. Even so, they are an important part of our economic system.

Examples of nonprofit organizations:

• cooperatives
• labor, professional, and business organizations
• government

Objectives:

• Describe nonprofit organizations
• Explain the direct and indirect role of government in our economy

Wikipedia’s definition of a nonprofit organization.

Here are the IRS rule regarding a nonprofit organization.

Homework: Find an article and write a summary - business organization (sole-proprietorship, partnership, corporation) problems (lawsuit, takeover, stock issues, etc.) due Wednesday the 28th due Thursday the 29th. Chapter 3 quiz, Friday the 30th. Unit 1 exam, Monday the February 2.

Note: A question was asked regarding the difference between a nonprofit organization and a not-for-profit organization, here is an answer.