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:

Insider Trading

Refers to the illegal practice of trading a public company's stock or other securities based on material, nonpublic information about the company.

High Executive Salaries

Compensation that is significantly above the average wage, typically awarded to top-level management and executives.

Mechanized Process

An automated procedure or method involving machinery or technology to enhance efficiency and reduce human labor.

Operational Flexibility

The ability of a business or organization to adapt to changes in conditions, demand, or environment while maintaining efficiency and effectiveness.