Which of the following characteristics distinguishes a government or not-for-profit entity from a business?
A) There is always a direct link between revenues generated and expenditures/expenses incurred.
B) Capital assets are used to produce revenues and save costs.
C) Revenues are always indicative of demand for goods and services.
D) The mission of the entity may include goals other than maximizing profit.

Question

Which of the following characteristics distinguishes a government or not-for-profit entity from a business? 
A) There is always a direct link between revenues generated and expenditures/expenses incurred.
B) Capital assets are used to produce revenues and save costs.
C) Revenues are always indicative of demand for goods and services.
D) The mission of the entity may include goals other than maximizing profit.

Quizplus · Accepted Answer

The primary distinction between government or not-for-profit entities and businesses is their mission. While businesses aim to maximize profits, government and not-for-profit entities often have goals that include but are not limited to financial gain, such as providing public services or fulfilling a specific social mission.

Which of the Following Characteristics Distinguishes a Government or Not-For-Profit