- 1 Marks
Question
Which of the following best describes the objective of a not-for-profit organization?
A. Maximizing benefits
B. Maximizing shareholders’ wealth
C. Earn a return for the owners
D. Increase in market value
E. Capital growth
Answer
Answer:
A. Maximizing benefits
Explanation:
The primary objective of a not-for-profit organization is to maximize benefits for the community or specific groups rather than to maximize profits for shareholders or owners. These organizations focus on serving public interest rather than generating wealth for stakeholders.
- Tags: Business Management, Business Objectives, Not-for-Profit Organization
- Level: Level 1
- Topic: Nature of Business, Types, and Objectives
- Series: MAY 2024
- Uploader: Dotse