Which Statement Best Describes the Most Significant Difference Between a For-Profit

question 36

Multiple Choice

Which statement best describes the most significant difference between a for-profit organization or a business firm and a nonprofit organization?

• A)Business firms operate with larger budgets than nonprofits.
• B)Nonprofit organizations do not carry on economic activities while business firms do.
• C)Nonprofit organizations are concerned with social issues and business firms are not.
• D)Both serve customers, but business firms seek a profit while nonprofit organizations do not.
• E)Nonprofit organizations are publicly owned and business firms are privately owned.

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Definitions:

Electrical Motor

A device that converts electrical energy into mechanical energy, commonly used in appliances, industrial equipment, and vehicles.

Manufacturing Overhead

includes all indirect costs associated with the production process, such as utilities, maintenance, and salaries of non-direct labor.

Standard Cost System

An accounting method that uses predetermined costs for product costing and decision-making purposes.

Standard Labor-Hours

The estimated amount of time that should be required to complete a task or produce a unit of goods.