Continuous Two-Stage Culture of Streptococci

Holmström, Björn; Rose, Joan

doi:10.1016/b978-0-12-395496-1.50019-3

Cited by 1 publication

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“…If this cannot be done with great precision, and mismeasurement is very costly, one of the tasks should likely be outsourced to other managers. 168 In nonprofits, multiple tasks raise the further danger of weakening the nondistribution constraint. Again, the nonprofit commitment helps managers to credibly pledge not to divert customer dollars to the enrichment of equity investors.…”

Section: Charitable 'Conglomerates'mentioning

confidence: 99%

A law and economics perspective on nonprofit organizations

Steinberg¹,

Galle²

2018

Research Handbook on Not-for-Profit Law

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The field of law and economics concerns using economic analysis to design better laws and legal and regulatory institutions. Classic applications of this field examine social efficiency and distributional consequences, the theory of the firm, assignment of property rights, minimizing transactions costs, delegation and agency problems and tort law. Nonprofit organizations present variations on these classic law and economics themes, as well as many other elements of the literature, and papers applying the tools of law and economics to nonprofit issues are appearing more regularly. But, to our knowledge, no one has attempted to draw together this scattered literature. That is our main task for this chapter. In the process of bringing this literature together, we note differences between the law and economic analysis of for-profit and non-profit institutions and highlight the opportunities to develop new literature that focuses on these differences. A. Defining Nonprofit Organizations We use Henry Hansmann's definition: a nonprofit organization is one prohibited by law or irrevocable internal decisions from distributing profits to those in control of the organization. 1 This 'nondistribution constraint' is found in every US state's nonprofit corporation statute, and has been found useful as one of several defining characteristics used to gather data for the 45-country Johns Hopkins Comparative Nonprofit Sector Project. 2 This differs from other definitions that stress purpose (eg, not established to make money) by focusing on a structural characteristic that has consequences for economic behavior. Other organizational structures with social purposes, like cooperatives and worker-managed firms, do not qualify, as they distribute profits. However, mutual savings banks do qualify, despite distributing profits to members, as the board of directors does not receive distributions and members have no control rights. Nondistribution of profits prohibits distributions in the form of entrepreneurial and (arguably) managerial compensation, a corollary to the nondistribution constraint that Hansmann calls the 'fair compensation constraint'.

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Section: Charitable 'Conglomerates'mentioning

confidence: 99%