One the Important Advantages of the Nonprofit Organization Is

question 37

Multiple Choice

One the important advantages of the nonprofit organization is:

• A) lower taxes.
• B) ease of issuing new stock.
• C) ability to pay top managers portions of the residual profit.
• D) its universal use in the manufacturing sector.

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Definitions:

Cost Leadership

A business strategy aimed at becoming the lowest-cost producer in an industry, enabling it to offer products or services at a lower price than competitors.

Porter's Model

A strategic tool developed by Michael E. Porter used to analyze the competitive environment of an industry, including five forces: the threat of new entrants, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers, and competitive rivalry.

Generic Competitive Strategies

Generic Competitive Strategies are basic approaches developed by Michael Porter for businesses to gain competitive advantage, including cost leadership, differentiation, and focus strategies.

Cost Synergies

The financial savings achieved by combining two or more entities, processes, or systems, leading to lower costs than if operated separately.