The Following Are Characteristics Shared by Both For-Profit and Not-For-Profit

question 107

Multiple Choice

The following are characteristics shared by both for-profit and not-for-profit corporations EXCEPT ________.

• A)electing a board of directors to run the organization
• B)offering employee fringe benefits
• C)having limited liability protection
• D)issuing shares of stock

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Definitions:

Surplus Amount

The quantity of a good or service that exceeds what is demanded at a given price.

Producer Surplus

The difference between what producers are willing to receive for a good compared to what they actually receive, essentially the profit.

Price Rises

An increase in the cost of goods or services, often due to factors such as inflation, increased production costs, or higher demand.

Existing Producers

Companies or individuals that are currently producing and selling goods or services within a market.