Which of the following statements BEST describes the distinction between a not-for-profit corporation and a for-profit corporation?
A)Not-for-profits do not pay their employees.
B)Not-for-profits cannot be organized for any person's private gain.
C)Not-for-profits have to dissolve when the owner leaves or dies.
D)Not-for-profits cannot hire executive officers to run the business.

Question

Quizplus · Accepted Answer

The biggest distinction between a not-for-profit and for-profit corporation is that a not-for-profit cannot be organized for any person's private gain. Instead, its purpose must be for the public benefit or a specific charitable or educational purpose. Not-for-profits can still pay their employees and hire executives to run the organization. They also do not have to dissolve when the owner leaves or dies, as they are not owned by an individual.

Which of the Following Statements BEST Describes the Distinction Between