Which of the following is an institution that functions much like a business, but does not operate for the purpose of generating profits?

Question

a labor union

a nonprofit organization

a business franchise

a consumer cooperative

Answer 1

The correct answer is:

a nonprofit organization

Nonprofit organizations function much like businesses in that they provide services, manage operations, and may engage in revenue-generating activities, but their primary purpose is not to generate profits for owners or shareholders. Instead, they focus on fulfilling a mission or providing benefits to the community.