You are trying to decide if an entity you are reviewing is a government or a not-for-profit. Which of the following would indicate it is a government rather than a not-for-profit entity?
A) Absence of profit motive.
B) A primary source of revenues is taxes.
C) Resource providers do not expect benefits proportional to the resources provided.
D) Absence of a defined ownership interest that can be sold, transferred, or redeemed.

Question

Quizplus · Accepted Answer

A primary source of revenues being taxes is a clear indicator that the entity is a government. Not-for-profits may receive some funding from government grants or contracts, but taxes are not a primary source of revenue for them.

You Are Trying to Decide If an Entity You Are