Explain the Role of Both Profit-Seeking Businesses and Non-Profit Organizations

question 22

Essay

Explain the role of both profit-seeking businesses and non-profit organizations in the overall "meaning of business."

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Definitions:

Externalities

Economic side effects or consequences of industrial or commercial activity that affect other parties without being reflected in the costs of the goods or services involved.

Injunctions

Court orders requiring an individual, group, or organization to do or refrain from doing a particular act.

Externalities

Externalities are indirect effects of economic activities on third parties, which can be either positive or negative.

Negative Externality

A situation where a third party is adversely affected by the outcome of a transaction or activity between others, not compensated by those causing the impact.