Which statement best describes the most significant difference between a for-profit organization or a business firm and a nonprofit organization?
A)Business firms earn a profit each year while nonprofits operate at a deficit annually.
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.

Question

Quizplus · Accepted Answer

A business firm is a privately owned organization that serves its customers in order to earn a profit so that it can survive.A nonprofit organization is a nongovernmental organization that serves its customers but does not have profit as an organizational goal.

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