Which Statement Best Describes the Most Significant Difference Between a For-Profit

question 235

Multiple Choice

Which statement best describes the most significant difference between a for-profit organization or a business firm and a nonprofit organization?

• A)Business firms earn a profit each year while nonprofits operate at a deficit annually.
• B)Nonprofit organizations do not carry on economic activities while business firms do.
• C)Nonprofit organizations are concerned with social issues and business firms are not.
• D)Both serve customers,but business firms seek a profit while nonprofit organizations do not.
• E)Nonprofit organizations are publicly owned and business firms are privately owned.

---

Definitions:

Human Capital

The qualifications, know-how, and lived experiences of a person or society, assessed in terms of their profitability or cost to a business or country.

Compensating Differential

The additional amount of income that a worker requires to accept a job with undesirable features, compared to a similar job with more favorable features.

Cardiologist

A specialist doctor who diagnoses and treats conditions related to the heart and blood vessels.

Human Capital

Competencies, wisdom, and learning acquired by an individual or collective, evaluated for their financial or beneficial impact on an enterprise or sovereign state.