How Are Not-For-Profit Organizations Different from Profit-Seeking Businesses

question 28

Multiple Choice

How are not-for-profit organizations different from profit-seeking businesses?

• A) Not-for-profit organizations operate only in the public sector.
• B) Profit-seeking organizations always have a surplus of funds; not-for-profit organizations always have a deficit of funds.
• C) Not-for-profit organizations focus on goals other than generating profits.
• D) Profit-seeking businesses do not focus on social or ethical responsibilities.

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Definitions:

Economic Change

The variation in the economy over time, including phases of growth, recession, recovery, and expansion that affect employment, living standards, and resource distribution.

Exponential Growth

A growth pattern where the size of a population increases dramatically over a short period of time due to a constant rate of growth applied to an increasing base amount.

Stock Portfolio

A collection of stocks owned by an individual or an institution, diversified across various sectors.