COMMERCE 1B03 Chapter 6: Chapter 6-6
14 Oct 2018
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Coattail effects: the actions of other franchisees have an impact on your future growth and profitability. You failure rate has been low, which could be forced out of your franchise makes this method of ownership even if yours has been profitable attractive to canadians. An organization owned and controlled by people-- producers, consumers, or workers-- with similar needs who pool their resources for mutual gain. 85000 co-ops and credit unions have different purpose, control structure and profit allocation. Different purpose : cooperatives meet the common needs of their members, whereas mist investor owned businesses exist to maximize profits. Different control structure : use a system of one-member/one vote, this helps serve the common need rather than individual need. A different allocation of profit: share profits among member-owners on the basis of how much they use the organization, not on how many share they hold.
