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

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.

Answer 1

Nonprofit organizations differ from for-profit businesses in that:

nonprofit organizations retain profit rather than distribute it to shareholders.

This is the correct response, as nonprofit organizations do not distribute profits to shareholders but instead reinvest any surplus back into the organization's mission and objectives.