Because Profit, or the 'Bottom Line', Is Not the Measure

question 69

True/False

Because profit, or the 'bottom line', is not the measure of success for not-for-profit organisations, managers of charitable organisations do not have to concern themselves with the financial aspects of their organisations.

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Definitions:

Net Income

The amount of profit remaining after all operating expenses, taxes, and interest have been deducted from total revenue.

Debt Investments

Financial assets representing money borrowed that must be repaid, typically with interest, such as bonds or loans.

Stock Investments

Financial assets representing ownership in a company, with the expectation of earning dividends or selling at a higher price for profit.

Brokerage Fees

Charges applied by a broker for performing trades or offering particular services.