A primary characteristic that distinguishes government from not-for-profits is
A) The need to generate revenues equal to or more than expenditures/expenses.
B) The ability to levy taxes.
C) The need to provide goods or services.
D) The correlation between revenues generated and demand for goods or services.

Question

A primary characteristic that distinguishes government from not-for-profits is 
A) The need to generate revenues equal to or more than expenditures/expenses.
B) The ability to levy taxes.
C) The need to provide goods or services.
D) The correlation between revenues generated and demand for goods or services.

Quizplus · Accepted Answer

Governments have the unique authority to levy taxes, which is a primary characteristic that distinguishes them from not-for-profit organizations. Not-for-profits rely on donations, grants, and service revenues, but do not have taxing powers.

A Primary Characteristic That Distinguishes Government from Not-For-Profits Is