REC 475 Lecture Notes - Lecture 2: Bulk Purchasing
Document Summary
Commercial private corporations (normally bigger than nonprofit: legal authority. Nonprofit enabling legislation and designation of tax status. Commercial incorporation: mandate (the reason they go to work) Public serve social welfare and needs of citizens (serve the people) Nonprofit serve specific social welfare needs or leisure interests of specific population (serve a certain group of people without being funded continuously) Commercial only goal is return on investment aka profit for the company: source of funds. Public rely on taxes, grants, donations, earned income. Nonprofit rely on grants, memberships, donations, fund- raising, earned income. Commercial rely on investors, creditors, earned income. Creditor- loans you money and doesn"t expect anything in return. Investors- loans you money but wants a share in the company to get more money back. Public the market is limited to geographic/political area. Nonprofit the market is defined by particular need. Ex: there is an interest in theatre shows so create a theatre group: market management.
