One Difference Between a For-Profit and a Not-For-Profit Organization Is

question 35

Multiple Choice

One difference between a for-profit and a not-for-profit organization is:

• A)excess revenue over expenses,in a for-profit organization can go to the organization's owners,in a not-for-profit organization this excess goes back into the organization.
• B)a for-profit organization is not operated for anyone's personal gain,a not-for-profit operation is expected to provide a return for its investors.
• C)a for-profit organization will budget for a profit each year and a not-for-profit will budget to break-even.
• D)a for-profit organization will prepare an income statement and balance sheet each year,a not-for-profit will not prepare these statements.

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Definitions:

Etiquette

The set of conventional rules for polite behavior in society or among members of a particular profession or group.

Persuasion

Persuasion is the act of influencing or convincing others to agree with a point of view, idea, or behavior through argument, appeal, or discussion.

Reciprocity

A mutual exchange of privileges or services between parties, where both benefit from the arrangement.

Consistency

The state or characteristic of being uniform, unchanging, and reliable over time.