Which Statement Best Describes the Most Significant Difference Between a Business

question 277

Multiple Choice

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

• A) Business firms operate with larger budgets than nonprofits.
• 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.

Distinguish between indirect costs that are difficult to trace to a particular job from those that are not.

Assess the impact of estimated activity level on the spread of fixed costs and the costing of unused capacity.

Identify the factors that influence the selection of a base for assigning overhead costs.

Analyze the effects of actual overhead and labor hours differing from estimated amounts on the application of manufacturing overhead.

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Definitions:

Supreme Court

The highest federal court in the United States, which has the ultimate appellate jurisdiction over all federal and state court cases that involve a point of constitutional and federal law.

Business Organization

An entity formed for the purpose of carrying out commercial enterprise, involving structured operations and strategies to meet its goals and objectives.

Liberal Reformers

Individuals or groups advocating for changes that align with liberal principles, such as increased rights and freedoms, often in the context of social justice.

Wealth Inequality

The unequal distribution of assets within a population, leading to significant differences in wealth among individuals or groups.