Social Entrepreneurs Who Start New Ventures Such as Teach for America

question 298

Multiple Choice

Social entrepreneurs who start new ventures such as Teach for America and FreeWill are often structured as ________ rather than business firms.

• A) business agencies
• B) nonprofit organizations
• C) government agencies
• D) cooperatives
• E) social service agencies

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Definitions:

Accounting Equation

The foundation of double-entry bookkeeping, stating that assets are equal to the sum of liabilities and owner's equity: Assets = Liabilities + Owner's Equity.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing what the owners or shareholders own outright in the company.

Liabilities

Financial obligations a company owes to outside parties.

Assets

Resources owned by a business which are expected to provide future economic benefits, such as cash, inventory, property, and equipment.