Section Focus:1. What are the different types of business organizations?2. Describe the characteristics of sole proprietorships, partnerships, and corporations.3. Analyze the advantages and disadvantages of business organizations.4. What is the difference between stocks [owner] and bonds [lender]?

5. What are the advantages and disadvantages of franchises?

6. What makes McDonald’s the greatest franchise ever? [not the greatest hamburgers, just the greatest franchise]

Total Business SalesTotal Business Sales

Sole ProprietorshipsSole Proprietorships

5% $434 billion5% $434 billion

[Ave. $60,000][Ave. $60,000]

Partnerships Partnerships

11% $500 billion11% $500 billion

[Ave. $250,000][Ave. $250,000]Corporations Corporations [Ave. $3 M][Ave. $3 M]

84% $8 trillion 84% $8 trillion 45 made over $20 45 made over $20 bil.bil.

143 Made over $10 bil.143 Made over $10 bil.Only 20 nations have GDPsOnly 20 nations have GDPsgreater than Wal-Marts $379 bil.greater than Wal-Marts $379 bil.

22 Million businesses22 Million businessesSole ProprietorshipsSole Proprietorships72%-over 16 million72%-over 16 million

PartnershipsPartnerships8% - 1.5 million8% - 1.5 million

CorporationsCorporations20% - 4 million20% - 4 million

Business OrganizationsBusiness Organizations

Let’s start Let’s start a dance a dance

company.company.

THE BUSINESS POPULATIONTHE BUSINESS POPULATION

Business Shares of Domestic OutputBusiness Shares of Domestic Output

CorporationsCorporations20%20%

PPartnershipsartnerships8%8%

SoleSoleProprietorshipsProprietorships

72%72%

Partnerships 11%Partnerships 11%

CorporationsCorporations84%84%

Percentage of FirmsPercentage of Firms Percentage of SalesPercentage of Sales

FarmerFarmer Sole Proprietorship 5%Sole Proprietorship 5%

Business FailuresBusiness Failures

Over 500,000 small businesses are launched each year. Over 500,000 small businesses are launched each year. One third of these start-ups fail within two years.One third of these start-ups fail within two years.

They are the simplest to formsimplest to form because of the small amount of capital needed to start up.

ExamplesExamples are beauticians, dentists, lawyers, dry-cleaning and lawn care and lemonade stands.

1. Sole proprietorshipsSole proprietorships – oneone individualindividual in business for himself. They make up 72%72% of all businesses and take in 5%5% of total profits.

Distribution of Sole Proprietorships Distribution of Sole Proprietorships Based on Annual Sales and IndustryBased on Annual Sales and Industry

AA. EasyEasy to quit the business if the owner decides to do so. There are no co-owners to consult.

BB. Owners receive the entireentire profit.

CC. EasyEasy to form–no complicated legal documents or complicated tax forms, small amount of capital needed.

Personal satisfaction (psychological-being your own boss) prestige and a sense of accomplishment.

DD. TotalTotal control – can make decisions quickly, can hire and fire easily, can respond quickly to trends.

2. 2. AdvantagesAdvantages of a Sole Proprietorship of a Sole Proprietorship

AA. UnlimitedUnlimited liability (debt) - have to forfeit their personal possessions as well as their businesses. (auto, other business, house, savings)

B.B. Burden of solesole responsibility – must have business sense.

C.C. LimitedLimited potential for growth – collateralcollateral (any thing of value to guarantee a loan [like giving up your personal possessions) [Let’s say you put your homehome up for collateral but have to give it up]

D.D. DifficultDifficult to attract qualified employees–can’t offer fringe benefits. [Let’s say you ask for more benefits]

E.E. ShortShort life span – depends on owner’s health and competence. If the owner diesdies, it is over.

3. 3. Disadvantages Disadvantages of Sole proprietorshipsof Sole proprietorships

I want medical benefits!I want medical benefits!

44 PartnershipPartnership - business operated by 2 or more people.

They are the least commonleast common with only 8%8% and take in only 11%11% of profits.

66 2. LimitedLimited – some non-active partners join as an investment (and thus have limited liability-just the investment, not the property). He is a “silent”“silent” partner.

I gave $30,000 as a silentI gave $30,000 as a silent partner, partner, so I don’t have to do anything.so I don’t have to do anything.

Two Forms of PartnershipsTwo Forms of Partnerships55 1. GeneralGeneral – equal decision making & unlimited liabilityunlimited liability among partners.

Let’s say your silent partner puts up $30,000 to insure the loan.

SpecializationSpecialization – specific duties assigned to different partners.

A. A. SharingSharing of losses. Can borrow more and can sustain heavier losses.

B. B. EasyEasy to form. Small amount of money to start & operate.

C. C. SharedShared decision making – more informed decisions. D. Personal satisfaction – sense of accomplishment.

Advantages of PartnershipsAdvantages of Partnerships[“Two heads are better than one.”][“Two heads are better than one.”]

Two HeadsTwo Heads better thanbetter than One HeadOne Head77

Distribution of PartnershipsDistribution of Partnerships Based on Annual Sales & IndustryBased on Annual Sales & Industry

8.8. Disadvantages of PartnershipsDisadvantages of Partnerships

A. A. DisagreementsDisagreements among partners – conflicts delay decisions, lower employee morale, & lessen efficiency. Each partner is responsible for the acts of all other partners. Must choose good partners.

B. B. Have to shareshare the profits.

C. UnlimitedUnlimited liability – can lose their business and personal possessions.

D. Limited lifeLimited life – sickness, conflicts, or death can end the partnership.

Take That!Take That!

Demonstration of Demonstration of ““Unlimited LiabilityUnlimited Liability”” Harold NodoeNodoe, Gloria PoorPoor and Jack RichRich owned theTrio Dress ShoppeTrio Dress Shoppe as a partnership. Under the terms ofTheir partnership agreement, Nodoe and PoorNodoe and Poor wereentitled each to 40% of the profits40% of the profits, while the remaining 20%20% went to RichRich. Last month the firm collapsedfirm collapsed. After selling off everything it owned, the company still owed owed its creditors $10,000its creditors $10,000. Since Nodoe and PoorNodoe and Poor had nonoassetsassets of their own, the creditors recovered the totalcreditors recovered the total amountamount owed to them from Jack Rich’s personal bankJack Rich’s personal bankaccountaccount.

Harold NodoeHarold Nodoe Gloria PoorGloria Poor Jack RichJack Rich

Largest Corporate Profits - Largest Corporate Profits - 200720071.1. Wal-Mart $379 BWal-Mart $379 B

2. Exxon Mobil 359 3. Chevron 2044. Conoco 1875. General Motors 1736. GE 1737. Ford 1728. Citigroup 1469. Bank of America 11610. AIG 11011. HP 10412. J.P. Morgan 10013. Berkshire-Hath 9914. Verizon 9315. HP 9216. IBM 9917. Valero 9118. Home Depot 9019. McKesson 8820. Citigroup 82

Largest EmployersLargest Employers1. Wal-MartWal-Mart 1.35 M 1.35 M “associates”“associates” [1.6 million ‘associates” worldwide][1.6 million ‘associates” worldwide]

2. Sears Holding 400,0003. General Motors 386,0004. McD’s 364,0005. UPS 359,0006. IBM 316,0007. GE 313,000

Wal-MartWal-Mart has 4,179 total stores in the U.S.; 1,868 Wal-Mart stores, 1,586 Wal-Mart Super Centers, &725 Sam’s Clubs in the U.S.

The GDPs for the Virgin Islandsis $1.8 billion; for Djibouti, it is $582 million; and for Afghanistan, it is $21 billion.

Wal-Mart example

• Wal-Mart’s IPO was in 1972. 300,000 shares 300,000 shares were sold at $16.50 per share$16.50 per share.

• The stock has split 11 timessplit 11 times (2 for 1 splits2 for 1 splits) since then – last split was in 1999.

• If you purchased 100 shares100 shares of Wal-Mart on the day of the IPO you would have spent $1,650spent $1,650.

• Today you would have 204,000 shares204,000 shares of stockof stock.• Today current value of your shares would be $11,044,560$11,044,560 (stock closed at $54.14 yesterday).• Each quarter you would be receiving a check for

$136,680$136,680 (at current dividend of .67dividend of .67). Annual Annual income for dividendsincome for dividends alone would be $546,720$546,720!

9 9 CorporationsCorporations – a business organization recognized as a separate legal entity (existence).

10 10 StockholdersStockholders – are the owners of a corporation who invest by buying shares. StockStock – the certificate of ownershipcertificate of ownership.99 Corporations make up about 20%20% of business organizations but produce over 90%90% of total sales.Corporations can operate like a sole proprietor. Inc. meansthe business is a corporation. [Treated by the courts as an““artificial person”.artificial person”. They can sue, be sued, enter into contracts,and pay taxes.

Two Types of Corporations1111 PubliclyPublicly owned – anyone can invest by buying shares, so unlimitedunlimited # of owners. Includes most corporations.1212 ClosedClosed – is owned by a limitedlimited number of stockholders. Ford Motor Company was family owned (closed) until 1956. They went public in 1956 & issued 10,200,000 shares of stock.1313 Wal-Mart leads all other corporations in sales at $371 billion.

Corporate TriviaCorporate Trivia• A corporation can be suedcan be sued but the people who own the

corporation (stockholdersstockholders) can not be suedcan not be sued.• A corporation has potentially perpetual lifepotentially perpetual life.• 1.) Nearly all large companies are corporationsNearly all large companies are corporations. • 2.) Nearly all corporations are small companiesNearly all corporations are small companies. • 3.) Therefore, a small minority of corporations constitute a small minority of corporations constitute

nearly all the large companiesnearly all the large companies. • In other words, of 4 million corporations4 million corporations, about 2,000 are 2,000 are

large companieslarge companies, and these 2,000 large corporations2,000 large corporations constitute constitute the the vast majority vast majority of theof the nation’s large companies nation’s large companies.

• Also, the 15% of corporations that do more than $1 million 15% of corporations that do more than $1 million in sales take in in 85% of the receipts of corporationsin sales take in in 85% of the receipts of corporations.

Where The Jobs Where The Jobs AreAre And And WereWere 20072007 198019801.1. Wal-MartWal-Mart 1,350,000 1,350,000 GMGM 853,000853,000

2.2. McDonald’s 418,000McDonald’s 418,000 FordFord495,000495,000

3.3. Sears Holding 400,000Sears Holding 400,000 GEGE405,000405,000

4.4. UPSUPS 355,000 355,000 IIT&TT&T 368,000368,0005. Ford5. Ford 327,500 327,500 [International Telephone & Telegraph][International Telephone & Telegraph]

6. GM6. GM 325,000 325,000 IBMIBM 337,000337,000

Then there are new jobs in new technologies that

didn’t exist in 1980. CiscoCisco has 34,00034,000; MicrosoftMicrosoft

has 55,00055,000; OracleOracle has 40,00040,000; & DellDell has 46,00046,000Surviving as a business is no small feat. 1/3 of the firms in the Fortune 500 list in 1970 no longer existno longer exist.

If a company had only 200 sharesand you bought a share, you wouldown 1/200th of the company.

1414 StockholdersStockholders (ownersowners) and bondholders (lendersenders) For companies, stocks and bonds are 2 ways to raise money. For consumers, they are a way to earn money.

1515 Common stockCommon stock – (owners are votersvoters) gives a voice in how the corporation is run and a share in variable dividends – high dividends if profits are high. The Board of Directors may wish to withhold all dividends if the money is needed for plant expansion or payment on debts. Because they can vote, they determine how a corporation is managed. They get one vote for every share they own.

In a good year, they will receive a higherhigher dividend than preferred stockholders. (Preferred stock dividends are fixed, common stock is not, so they are taking more risk.

Preferred StockPreferred Stock – (non-votersnon-voters) guaranteed dividends that are paid from profits before the company pays any dividends on common stock. If the company is unable to pay this fixed dividend in full, it makes up the difference when the company’s profits increase. They are like a silent partnerlike a silent partner because they can not vote and have no say in how the business is run.

1616 Corporate BondsCorporate Bonds – a certificate issued by a corporation in exchange for money borrowed from investors. There is a written promise to repay the amount borrowed at a later date (an I.O.U.I.O.U.) lending money for 10, 20, or 30 years. BondholdersBondholders are creditorscreditors, not owners.

1717 Advantages of Corporations from a StockholdersAdvantages of Corporations from a Stockholders ViewpointViewpointAA 1. LimitedLimited liability – limited to the amount invested. His personal assets may not be seized to pay corporate debts.BB 2. May earn a profit withoutwithout working.

1818 Advantages From the Corporation’s ViewpointAdvantages From the Corporation’s ViewpointAA 1. SeparationSeparation of ownership from managementof ownership from management – can hire the best management available. Specialized talent can be hired in all areas.BB 2. EasyEasy to raise capitalto raise capital – can issue stocks or sell bonds allowing the corporation to tap the savings of thousands.CC 3. LongevityLongevity – they have a life independentindependent of their owners.

Disadvantages of a CorporationDisadvantages of a Corporation

Disadvantages from the stockholders point of viewDisadvantages from the stockholders point of view.1. When stockholders earn a profit, they feel no great sense of pride.

BB 2. Many Many government restrictionsgovernment restrictions – must follow regulations of the SEC, comply with laws on merging and maintain many records. CC 3. HeavyHeavy organizing expensesorganizing expenses – pay for its charter and then depending on the state, expenses can run from a few hundred to thousands of dollars.DD 4. DoubleDouble taxationtaxation – when a company distributes profits (dividends) to its stockholders, they have to pay personal income tax on dividends in excess of $100. Corporations earnings are subject to taxation. The income tax on corporations is 1515%% on the first $50,000; 25%25% from $50,001- $75,000; 3434%% from $75,001-$100,000; 39%39% from $100,001-$335,000; 35%35% from 335,001-$10 mil. 38%38% from 10M-18.3million; & a flat 35%35% over$18.3 million.

1919 Disadvantages from the corporation’s point of viewDisadvantages from the corporation’s point of view.A 1. SlowSlow in decision making – must go in decision making – must go thru chain of thru chain of commandcommand.

BullBull andand BearBear MarketsMarkets

Then there is the kangaroo market.kangaroo market.

On this day, Sam WaltonSam Walton,the richest man in the world,had a paperpaper lossloss of of $1.5 $1.5 billionbillion.

508508 points points2424% drop% dropin one dayin one day

10-19-8710-19-87

DateDate DeclineDecline % Decline% Decline10/19/8710/19/87 508 points508 points 24% 24%10/28/29 38 points 13%10/29/29 31 points 12%11/26/29 26 points 10%12/18/1899 6 points 8% 8/12/32 6 points 8% 3/14/07 7 points 8%10/26/87 156 points 8% 7/21/33 8 points 8%10/18/37 11 points 8% 2/01/17 7 points 7%10/27/97 554 points 7% [$700 billion lost in one day] 4/14/20004/14/2000 661 points661 points 6% 6%3/2000-2/2003 $7.7 trillion was lost$7.7 trillion was lost[Market value was worth $17 trillion$17 trillion]

AdvantagesAdvantages//DisadvantagesDisadvantages of Sole of Sole ProprietorshipsProprietorships

Ease of FormationEase of Formation

Ease of FormationEase of Formation

Single TaxationSingle Taxation

Single TaxationSingle Taxation

Unlimited LiabilityUnlimited Liability

Lack Lack of of ContinuityContinuity

Lack of ContinuityLack of Continuity

AdvantagesAdvantages DisadvantagesDisadvantagesUnlimited LiabilityUnlimited LiabilityFreedomFreedom

Low StartLow Start--up Costsup Costs Difficulty Difficulty Raising MoneyRaising Money

Reliance OnReliance OnOne PersonOne Person

OwnershipOwnershipTransfer DifficultTransfer Difficult

Possibility ofPossibility ofConflictConflict

Larger Talent PoolLarger Talent Pool

Larger Money PoolLarger Money Pool

AdvantagesAdvantages//DisadvantagesDisadvantages of General Partnershipof General Partnership

AdvantagesAdvantages DisadvantagesDisadvantages

AdvantagesAdvantages//DisadvantagesDisadvantages of of CorporationsCorporations

Stockholder Stockholder RevoltsRevolts

High Start-up costHigh Start-up cost

High Cost of High Cost of RegulationRegulation

Double TaxationDouble Taxation

AdvantagesAdvantages DisadvantagesDisadvantages

Easier Access to MoneyEasier Access to Money

Greater likelihood ofGreater likelihood ofprofessional Managementprofessional Management

ContinuityContinuity

Limited LiabilityLimited Liability

AA HorizontalHorizontal Combinations – (a grouping of “competitors”“competitors”) a merger between corporations that make the same product.

This would be a merger of two or more banksbanks, or railroadsrailroads, or airline companiesairline companies, etc. Firms may merge to catch up with or eliminate their rivals. Chevron-Texaco bought Unical Oil.

Royal Caribbean CruisesRoyal Caribbean Cruises acquired Celebrity CruiseCelebrity Cruise Line Line and doubled in size, & became the 2nd largest cruise line behind CarnivalCarnival.

StaplesStaples tried to acquire Office DepotOffice Depot but the government blocked it on the grounds that it would reduce competitionreduce competition. Morgan-Chase-Bank One58 B Cingular-AT&T Wireless 41 B Compaq-HP 23 B GTE-Bell Atlantic 71 B Chevron-Texaco 43 B Daimler-Chrysler-Benz 41 B Sprint-Nextel 35 B Bank of Am.-FleetBoston Finan. 47 B

ChryslerChryslerAmerican MotorsAmerican MotorsChryslerChrysler

3 Types of Corporate Combinations3 Types of Corporate Combinations2020 1. What are the three ways corporate merger combinations can take place? (A mergermerger is when one company absorbs another) 2. What is the current trend in corporate combinations?

Standard Oil Trust: John D. Rockefeller had become rich during the Civil War supplying grain and meat, but he realized the potential the discovery of oil would bring about.• In 1863, he built a refinery in Ohio which brought in quick profits• In 18701870, he and some associates formed the Standard Oil Company of OhioStandard Oil Company of Ohio.• Because Rockefeller had no need for storage and insurance fees, he negotiated with the railroad for refunds which allowed him to reduce the cost of oil, underselling his competitors• When Rockefeller had enough capital, he intended to “buy out” his competitors refineries (horizontal consolidationhorizontal consolidation), but most state laws prevented one company from buying stock in another• Rockefeller’s lawyer, Samuel Dodd, found a loophole• In 1882, the owners of Standard Oil and the “allied”companies would combinetheir operations.• Companies would turn over their assets to 9 trustees and in turn would get a share of the profits• This new type of monopoly would be called a trusttrust comprising 40 companies

BB VerticalVertical CombinationsCombinations – merger of companies that are involved in different phases of production of the same product. [Purchasing one of your “suppliers”“suppliers”]

Examples1. 1. AutomakerAutomaker buys a tire factorytire factory2. 2. Bridgestone TireBridgestone Tire buying a rubber plantationrubber plantation3. 3. Campbell SoupCampbell Soup buying mushroom farmsmushroom farms4. 4. Funeral HomeFuneral Home bought a cemeterycemetery and a floral shopfloral shop5. 5. FordFord bought a steel millsteel mill to produce steel needed for autos

USX (Steel)USX (Steel)

Steel MillsSteel Mills

TransportationTransportation[shipping & RR co’s]

ResourcesResources[ore, coal, & iron]

ShellShell Oil CoOil Co. owns1. Oil fields2. Refineries, and3. Retail gasoline stations

Carnegie Steel: At the age of 30, Andrew Carnegie wisely decided to invest his wealth into steel shortly after the Bessemer Steel process came to light. • In the 1870’s, he set up the first American steel mills in Pittsburg, PA. • By 18891889, the Carnegie Steel CompanyCarnegie Steel Company was established.• He soon had enough money to buy the had enough money to buy the companies that performed each phase of companies that performed each phase of production (mines, pig iron furnaces, shipping production (mines, pig iron furnaces, shipping companies, rail lines…)companies, rail lines…) This is known as verticalvertical consolidationconsolidation• This allowed Carnegie Steel to keep low production costs and therefore low prices for consumers.• This was because of the phenomenon known as economies of scaleeconomies of scale

• As production increases, costs are lowered• Small companies could not compete because they did not own all phases of production.

CC ConglomerateConglomerate (Unrelated) Combination –merger between four or more companiesfour or more companies producing unrelated products. None is responsible for the majority of sales. These mergers may include a number of subsidiariessubsidiaries – acquired companies that have not been required to abandon their corporate not been required to abandon their corporate identity.identity.

Tobacco Products

Distilled Spirits

American Brands, Inc.American Brands, Inc.

About $3 $3 trilliontrillion in in mergersmergers each year worldwideworldwide & about

$1.6 $1.6 trilliontrillion in the U.S.U.S.

DiversificationDiversification is a good reason for conglomeratemergers. You are not ““putting all of your eggsputting all of your eggsin one basket.”in one basket.” Your over-all sales and profits will beprotected.

R.J. RR.J. Reynolds-eynolds- one of biggest

1. 1. Sea-landSea-land (containerized shipping)

2. 2. KFCKFC (2nd largest fast-food chain)

3. 3. Del MonteDel Monte (fruit processor)

4. 4. HeubleinHeublein (distilled spirits)

PfizerPfizer makes Viagra & Lipitor.1. 1. Chewing gumChewing gum (Trident,Dentyne)

2. 2. RazorsRazors (Schick)3. 3. Cough dropsCough drops (Halls)4. Breath mintsBreath mints (Clorets, Certs)5. AntacidsAntacids (Rolaids)

The ““trends in mergerstrends in mergers”” in the 90s was toward vertical vertical and horizontaland horizontal combinationscombinations.

The biggest cause of merger failuresfailures was mismatched corporationsmismatched corporations,therefore, conglomerate mergersconglomerate mergers were the ones most likely to fail.

Advantages of Corporate MergersAdvantages of Corporate Mergers1.1. EfficiencyEfficiency – eliminates overlapping jobs, can share resources and marketing skills. Mergers may lead to lower consumerlower consumer pricesprices making them better able to competecompete in world markets.

2. Less expensiveLess expensive, compared to having to build new plants and hire new employees.

3. Stockholders in the acquired corporationsacquired corporations normally benefit by having stock go up in value by about 30%30%.

4. Increased size means they can borrow more money.

1.1. Managers of merged corporationsManagers of merged corporations may not havenot have the necessary supervisorynecessary supervisory skillsskills.

2. Added unemploymentAdded unemployment when some positions are eliminated. 12,500 were laid off in Fleet Boston- Bank of America merger saving $650M. When Cingular bought AT&TCingular bought AT&T WirelessWireless, 10,00010,000 were laid off.

3. Purchasing corporation’s stock normally declinesPurchasing corporation’s stock normally declines.

4. Higher prices and fewer choicesHigher prices and fewer choices for consumers.

5. Acquiring corporation normally corporation normally goes into debtdebt.

What Town is This?What Town is This?

2222 FranchiseFranchise gives an individual an agreement to market a company’s product in return for a percentage (royaltyroyalty) of the profits. Semi-independent business.

The company is the franchiserfranchiser and the individual is the franchiseefranchisee.

The 1st franchise operation was started by Singer CompanySinger Company in 1851to sell sewing machines. In the last 40 years, franchising has reallytaken off, led by Ray KrocRay Kroc of McDonald’sMcDonald’s.

Today we have franchising for everything from hemorrhoid clinics[“You bend, we mend”][“You bend, we mend”] to auto clinics. A typical large city in theU.S. will have its share of Burger Kings, Foto-Mat, KFCs, Goodyear, Taco Bell, Pizza Hut, Dunkin Donuts, and others.

There are 3,0003,000 franchisesfranchises in 670670 industriesindustries, with 600,000600,000 outlets outlets.The franchiser will train your personneltrain your personnel, take care of marketingmarketingand accountingaccounting. The franchiseefranchisee receives a tried-and-testedtried-and-tested businessbusinessmethodmethod.

2323 Advantages of FranchisesAdvantages of FranchisesAA 1. Benefits of a well known tradetrade namename, systemized managementmanagement, and nationalnational advertisement.BB 2. Less than 5%5% fail each year (65% of all independently owned businesses fail within the first 5 years).CC 3. Chance to own yourown your own businessbusiness with minimum riskrisk.

2424 Disadvantages of FranchisesDisadvantages of FranchisesAA 1. May be tootoo manymany restrictions imposed so independence is sacrificed. BB 2. Takes a lotlot of money for start-up 3. May lose your investment if the company goes bankrupt.

Some franchises such as pizza, video rentals, frozen yogurt,instant printing, & tanning parlors will not make it because they are either too competitivetoo competitive or too unhealthytoo unhealthy.Tanning bedsTanning beds are very dangerous. There are two major typesof ultraviolet radiation-UV-A [think of A=Aging]. They have a longer wavelength & penetrate more deeply into the dermis and damage collagen & elastin giving you the dry, leathery,wrinkly look. UV-B [think of B = Burning] are a shorter wavelength & cause sunburn. Both cause melanoma, damagethe DNA of the skin surface and cause skin cancer.

2525 CooperativesCooperatives – voluntary association of people formed to carry on some kind of economic activity benefiting members.

Different Types of Cooperatives:Different Types of Cooperatives: 1. Producer CoopProducer Coop – group of farmers who join to get better prices for their goods. They eliminate the middle-man charges. 2. Housing CoopHousing Coop – formed by members to buy the building they live in. 3. Purchasing CoopPurchasing Coop – retail store owned and operated by its customers. 4. Credit UnionCredit Union – members pool their savings so they can borrow from it at lower rates (the most common form of coopmost common form of coop) 5. Service CoopService Coop – provides service to its members (electrical or telephone) 6. Baby-Sitting CoopBaby-Sitting Coop – families swap baby-sitting duties without ever exchanging money.

2626 NonprofitNonprofit OrganizationsOrganizations – provides products without making a profit. Churches are the most common. (Boy Scouts, Y.M.C.A., Salvation Army, & Goodwill)