Midterm Study Guide.docx - Midterm Study Guide 3490 What is a private club(CHAPTER 1 A private club is a place where people with a common bond of some

Midterm Study Guide.docx - Midterm Study Guide 3490 What is...

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Midterm Study Guide 3490 What is a private club? (CHAPTER 1) A private club is a place where people with a common bond of some type—similar interests, experiences, backgrounds, professions, and so on—can congregate for social and recreational purposes . By definition, a private club is a place that is not open to the public; an individual must be accepted by the rest of the membership before he or she may join. Once someone is accepted, he or she usually must pay an initiation fee and monthly membership dues. Some clubs also have minimum spending requirements for members (members must spend a certain amount of money each month or year in the club’s food and beverage outlets, for example). Who are its ancestors? (CHAPTER 1) U.S. clubs that began in the nine-tenth century or earlier were often started by a small group of individuals who decided to each put up a sum of money to buy a piece of land or an already-existing building and begin a club for purely social reasons. Many modern-day private clubs are built by developers as a way to help them sell homes; the club and its golf course are the centerpiece of a housing development, and individuals who buy the homes surrounding the club either are automatically members of the club or have the option to become members. Equity vs. Non-equity, Profit vs. Nonprofit (CHAPTER 1) Equity clubs are clubs owned by their members and governed by a board of directors elected by the members . In effect, the members are not just “customers,” but also shareholders (they ownequity in the club). Each member has a vote when it comes to electing board members or deciding major club issues (unless the member has purchased a type of membership that does not include voting rights). The managers of equity clubs work directly for the members, since the members own the club. Equity clubs are usually established as nonprofit corporations that are exempt from federal income taxes and some state and local taxes. Most private clubs are equity clubs. Non-equity clubs represent another form of ownership; the assets of the club are owned by an individual or a corporation, not the club’s members, and the members’ control over the club is much more limited . Members do not often participate in major policy decisions, as they do in equity clubs, and club managers in non-equity clubs work for the club’s owners, not the members. Non-equity clubs typically are not tax-exempt; they are usually for-profit organizations. Most nonequity clubs are corporate clubs or developer-owned clubs. Club types – which are likely to be equity vs not (CHAPTER 1) Club types – services and facilities by club type (CHAPTER 1) Country Clubs – a country club is a club that has a clubhouse and enough acreage for a golf course; most country clubs have other sports facilities as well. Country clubs are the most common type of private club in the United States. In addition to a golf course and its ancillary facilities (which typically include a driving range, chipping
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  • Spring '14
  • AllegraJohnson
  • Management, golf course, Gentlemen's club, Private Club

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