For Profit And Non-for Profit 1.1 Flashcards
What is a not-for-profit business?
It is a business which exists to make a profit but they pay their services with some of it and then donate it to another organisation.
What are the types of owners who run a for-profit-organisation?
A large scale business: shareholders
A small scale business: sole trader (one owner) or a partnership.
What is a for profit business?
It is a business which has the purpose of making a profit
What are some for profit and non-for-profit similarities.
Both have to make a profit to allow the organisation to survive pay bills.
Both have to be accountable for their actions.
High ethnical standards (behaviour)
What are the types of owners in a non-for-profit organisation?
No one really Owens it, but the organisations stakeholders benefit from the organisations work.
How are profits distributed for a profit organisation?
They are given to the owners, if a company makes a profit it’s shareholders or sole owner will receive it.
How are profits distributed in a non-for-profit organisation?
They are spent on the organisations expenses.
Eg- bills
