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 do not earn a profit.
nonprofit organizations do not earn a profit.

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

nonprofit organizations are not businesses.

Answer 1

The correct response is:

nonprofit organizations do not earn a profit.

Nonprofit organizations focus on furthering a social cause or advocacy and do not operate primarily to generate profit for shareholders, unlike for-profit businesses. However, they can earn revenue, and any surplus is typically reinvested back into the organization to support its mission rather than being distributed as profit.