GENERAL KNOWLEDGE

Detailed explanation-1: -A nonprofit organization is one that qualifies for tax-exempt status by the IRS because its mission and purpose are to further a social cause and provide a public benefit. Nonprofit organizations include hospitals, universities, national charities, and foundations.

Detailed explanation-2: -Both nonprofits and for-profit organizations seek to maximize revenues. Whereas for-profits may distribute revenues above the profit line to shareholders, nonprofits must recycle those earnings back into the organization. Not-for-profit organizations simply seek to generate enough money to keep the lights on.

Detailed explanation-3: -A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in contrary with an entity that operates as a business aiming to generate a profit for its owners.

Detailed explanation-4: -A for-profit corporation is an organization which aims to earn profit through its operations and is concerned with its own interests, unlike those of the public (non-profit corporation).

Detailed explanation-5: -Most business entities are considered to be for-profit organizations. Examples of for-profit organizations are airlines, construction companies, freight hauling companies, manufacturers, publishing companies, restaurants, retail stores, and shipping companies.