The most obvious distinction between not-for-profit organizations and for-profit firms is the focus on generating revenues above and beyond the costs.

Question

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Not-for-profit organizations are primarily focused on achieving their mission or purpose, rather than generating profits. While they may generate some revenue, their ultimate goal is not to make a profit, but rather to use any excess funds to further their mission. In contrast, for-profit firms are focused on generating revenue that exceeds their costs, with the ultimate goal of maximizing shareholder value.

The Most Obvious Distinction Between Not-For-Profit Organizations and For-Profit Firms