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

Question

Responses

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

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

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

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

Answer 1

The correct response is:

nonprofit organizations retain profit rather than distribute it to shareholders.

Nonprofit organizations can earn a surplus (often referred to as profit), but instead of distributing it to shareholders as in for-profit businesses, they reinvest it into their mission and programs.

Answer 2

Local craftsmen form a voluntary association, pooling resources and engaging in other cooperative behaviors to increase sales of their products. This scenario is an example of a(1 point)
Responses

service cooperative.
service cooperative.

franchise.
franchise.

producer cooperative.
producer cooperative.

consumer cooperative.

Answer 3

The correct response is:

producer cooperative.

In this scenario, local craftsmen are pooling resources and collaborating to increase sales of their products, which aligns with the definition of a producer cooperative.

Answer 4

Which of the following could be classified as a franchise?(1 point)
Responses

one of several unrelated laser tag companies in a region that are owned and operated by individuals
one of several unrelated laser tag companies in a region that are owned and operated by individuals

a national fast-food chain owned and operated by a single organization
a national fast-food chain owned and operated by a single organization

one of many daycare centers owned and operated by a single family
one of many daycare centers owned and operated by a single family

one of several hair salons owned and operated by individuals but licensed and supported by a single entity

Answer 5

The correct response is:

one of several hair salons owned and operated by individuals but licensed and supported by a single entity.

This scenario describes a franchise arrangement because the hair salon is licensed and supported by a single entity, which is characteristic of franchising.

Answer 6

A car washing company has developed a successful business model with effective pricing and marketing. To leverage this success, the company plans to sell licenses to potential business owners, giving them permission to use the name, product, and prices of the car washing company at different locations. In this scenario, the car washing company is(1 point)
Responses

a franchisor.
a franchisor.

a franchisee.
a franchisee.

a producer cooperative.
a producer cooperative.

a consumer cooperative.

Answer 7

The correct response is:

a franchisor.

In this scenario, the car washing company is a franchisor because it is selling licenses to potential business owners to use its name, product, and pricing in different locations.

Answer 8

A nonprofit organization with 501(c)(3) designation differs from other nonprofits in that the 501(c)(3) nonprofit organization(1 point)
Responses

operates in accordance with its stated mission.
operates in accordance with its stated mission.

is governed by a board of directors.
is governed by a board of directors.

does not earn any profit.
does not earn any profit.

enjoys local, state, and federal tax exemptions.

Answer 9

The correct response is:

enjoys local, state, and federal tax exemptions.

A nonprofit organization with 501(c)(3) designation is recognized by the IRS as a tax-exempt organization, allowing it to enjoy various tax exemptions at the local, state, and federal levels.