Agriculture Reference
In-Depth Information
Plate 4.3
Fragrant Floral
If Fragrant Floral is organized as a proprietorship, Jessica Alverson takes on all risks and rewards
for her business. Photo courtesy of USDA Natural Resources Conservation Service.
So, working with an attorney, they develop a set of articles of incorporation, and a set of
bylaws. They fi le this paperwork with the state and are granted corporate status. They issue
110 shares of stock, 50 each to Jessica and Erika. In addition, a friend in the landscaping
business, Peter Yu, is excited about the possibilities for Fragrant Floral and Perfect Gifts, and
he buys ten of the shares. Jessica, Erika and Peter are on the board of directors, and Jessica
is chairperson of the board. Fragrant Floral and Perfect Gifts, Inc. is open for business!
Cooperatives
Owned, operated and controlled by members, a
cooperative
is a distinct form of the
corporate form of business. Cooperatives are committed to helping members improve the
prices they receive for the products they produce and/or reduce the prices paid for the inputs
necessary to grow those products. Cooperatives also exist to help members fi nd markets,
and/or improve the negotiating position of members. Cooperatives provide economic and/or
operational benefi ts to member-owners, and then return the profi t to the member-owners
based on each member's use of the cooperative. The user-member is the total emphasis for
the cooperative. In contrast, generating profi t for the owners of the fi rm is the purpose of the
non-cooperative business enterprise. This is a very important difference.
