Which of the Following Statements Is Correct Regarding Not-For-Profit Organizations

question 30

Multiple Choice

Which of the following statements is correct regarding not-for-profit organizations?

• A)The sole common factor between not-for-profit organizations and for-profit firms is the financial bottom line.
• B)Not-for-profit organizations hope to generate as much revenue as possible to support their causes.
• C)Not-for-profit organizations are all found in the public sector.
• D)Historically, not-for-profit firms have had more exact goals and marketing objectives than for-profit firms.

---

Definitions:

Business Judgment Rule

A legal principle that protects corporate directors and officers when making business decisions, assuming those decisions are made in good faith and with due care.

Duty of Care

The legal obligation of a person to exercise a reasonable standard of care while performing any acts that could foreseeably harm others.

Officer

An individual appointed or elected to an executive position within an organization, often with specific duties and responsibilities.

Goal Setting

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives.