Nonprofit organizations differ from for-profit businesses in that(1 point)

Question

Responses

nonprofit organizations retain profit rather than distribute it to shareholders.
nonprofit organizations retain profit rather than distribute it to shareholders.

nonprofit organizations distribute profit to shareholders via dividends.
nonprofit organizations distribute profit to shareholders via dividends.

nonprofit organizations are not businesses.
nonprofit organizations are not businesses.

nonprofit organizations do not earn a profit.

Answer 1

Nonprofit organizations differ from for-profit businesses in that nonprofit organizations do not earn a profit.

While they may generate revenue through various means, any surplus funds are typically reinvested into the organization’s mission rather than distributed to shareholders.