Which of the Following Is a Difference Between For-Profit Businesses

question 35

Multiple Choice

Which of the following is a difference between for-profit businesses and nonprofit organizations?

• A)Financial resources for for-profit businesses come from government appropriations, grants, and donations, while nonprofit organizations are funded by the sale of products or services to customers.
• B)In for-profit businesses, managers focus on improving an organization's products and services to increase sales revenues, while in nonprofit organizations, however, services are typically provided to nonpaying clients.
• C)For-profit businesses are committed to servicing clients with limited funds, while nonprofit organizations have access to unlimited funds to service clients.
• D)In for-profit businesses, services are typically provided to nonpaying clients, while in nonprofit organizations, services are typically provided to paying clients.

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Definitions:

Equilibrium Price

Equilibrium price is the market price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Government Implementation

The process by which government agencies put laws, regulations, or policies into practice.

Price Floor

A minimum legal price set above the equilibrium price, leading to surpluses as supply exceeds demand.

Price Ceiling

A legal maximum on the price at which a good can be sold, often set by government.