Which of the following is a feature of nonprofit organizations that differentiate them from for-profit organizations?
A) lack of shareholders
B) lack of target customers
C) lack of stakeholders
D) lack of products or services

Question

Quizplus · Accepted Answer

Nonprofit organizations do not have shareholders, as they are not designed to make a profit for investors. Instead, they use any profits they generate to further their mission and objectives. For-profit organizations, on the other hand, exist to generate profits for shareholders. Choices B, C, and D are incorrect as nonprofits do have target customers or clients, stakeholders, and provide products or services, just like for-profit organizations.

Which of the Following Is a Feature of Nonprofit Organizations