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.

Question

Quizplus · Accepted Answer

The most significant difference between a for-profit organization or a business firm and a nonprofit organization is that business firms seek a profit while nonprofit organizations do not. Both serve customers and operate within budgets, but the primary goal of a for-profit organization is to generate revenue and maximize profits for shareholders, while the primary goal of a nonprofit organization is to further its mission or serve its community, without necessarily generating a profit.

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