Which of the Following Statements About Non-Profit Organizations Is True

question 87

Multiple Choice

Which of the following statements about non-profit organizations is true?

• A)Non-profit organizations have as a goal the notion of making profits.
• B)People in most non-profit organizations do not realize they are running a business.
• C)Most non-profit organization sell tangible goods.
• D)Like organizations in the business market, nonprofit organizations need to direct their selling efforts toward one major market.
• E)Non-profit organizations see contributors exclusively as providers of cash donations.

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Definitions:

Profit-maximizing

The business objective of achieving the highest possible profit from operations, achieved by balancing costs and revenues.

Factor Price

The payment received by a factor of production, for example, wages for labor, rent for land, or interest for capital.

Production Function

A mathematical representation of the relationship between inputs (such as labor and capital) and the maximum output that can be produced with those inputs.

Profit-maximizing

The process or strategy implemented by firms to determine the price and output level that returns the highest profit.