Final answer:
A voluntary nonprofit organization of independent and competing business units engaged in the same industry or trade is known as a trade association, which serves to collectively advocate for the interests of its members, including lobbying for beneficial regulations.
Step-by-step explanation:
A voluntary nonprofit organization of independent and competing business units engaged in the same industry or trade is a trade association or an industry trade group. These organizations are created to advocate for the collective interests of their members, providing support, resources, and a unified voice to influence public policy. Despite the individual companies being competitors within the marketplace, their association membership supports common goals such as lobbying for regulations that benefit the entire industry, promoting industry standards, or tackling large-scale industry-wide issues.
Notable examples of trade associations include the American Beverage Association, which represents companies like Coca-Cola and Red Bull, and the American Bankers Association. These entities are not driven by a for-profit motive; instead, they focus on the collective betterment and representation of their respective industries. For instance, trade associations often lobby for tax breaks or eased regulations, aiming to enhance conditions for all members within the industry.