Which of the following is common to both governments and not-for-profit entities but distinguishes these entities from for-profit entities?
A) The budget is a legal, financial document.
B) Revenues are usually indicative of demand for goods or services.
C) There is direct matching of revenues and expenses.
D) There are no defined ownership interests.

Question

Which of the following is common to both governments and not-for-profit entities but distinguishes these entities from for-profit entities? 
A) The budget is a legal, financial document.
B) Revenues are usually indicative of demand for goods or services.
C) There is direct matching of revenues and expenses.
D) There are no defined ownership interests.

Quizplus · Accepted Answer

Governments and not-for-profit entities do not have owners in the same sense that for-profit entities do. For-profit entities have shareholders or owners who have a claim on the profits of the entity, whereas governments and not-for-profits do not distribute profits to owners but reinvest them back into their services or programs.

Which of the Following Is Common to Both Governments and Not-For-Profit