Compare nonprofit organizations with companies in the private sector. (1 point)

Question

Nonprofit organizations generate profits and pay out their profits to shareholders, and any excess profits are reinvested to further
O the organization's goal. Private-sector companies use profits to cover overhead expenses, and any excess profits are provided to the stakeholders.

Nonprofit organizations use profits to cover overhead expenses, and any excess profits are reinvested to further the
О
organization's goal.
Private-sector companies generate profits and pay out their profits to shareholders and stakeholders.

Nonprofit organizations' main goal is to generate profits, where the proceeds are reinvested to further the organization's
• goal, and excess revenues. Private-sector companies use revenues to cover overhead expenses, then pay their shareholders and stakeholders.

Nonprofit
organizations use profits to pay the owners of the organization, and any excess profits are
• reinvested to further the organization's goal. Private-sector companies generate profits and pay out their excess profits to employees.

Answer 1

Private-sector companies use revenues to cover overhead expenses and generate profits. These profits are then distributed to shareholders and stakeholders. In contrast, nonprofit organizations also utilize profits to cover overhead expenses but reinvest any excess profits to further their organization's goals. Nonprofit organizations do not distribute profits to owners but rather reinvest them, while private-sector companies distribute profits to employees.