ECONOMICS
ENTREPRENEURS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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is not allowed to make a profit
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must use any profit it earns to further its social mission
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can use profit any way it sees fit
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uses profit for the financial gain of its operators
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Detailed explanation-1: -Nonprofits do not distribute profit to anything other than furthering the advancement of the organization. As such, you will be required to make your financial and operating information public so that donors can see how their contributions are being used.
Detailed explanation-2: -A nonprofit mission statement describes your organization’s fundamental, unique purpose. It communicates the value the nonprofit delivers, and what groups it serves, and how.
Detailed explanation-3: -Generally, for-profit companies seek to provide a product or service to consumers and make a profit by doing so. A nonprofit organization’s purpose is to provide a service or benefit to the community with no intention of earning a profit.
Detailed explanation-4: -A clear and well-focused mission statement can serve to guide all major decisions that a nonprofit organization must make-especially decisions about which new programs and projects to undertake, which to avoid, and which to exit.