Which of the following is a characteristic which distinguishes profit-oriented firms from non-profit organizations?
A)Profit-oriented businesses tend to focus their marketing activities on one public - their customers
B)Not-for-profit organizations seek to generate revenues above and beyond their costs to make money for all stakeholders involved
C)Not-for-profit organizations do not market tangible goods
D)Profit-oriented businesses often operate as a monopoly in their industry

Question

Which of the following is a characteristic which distinguishes profit-oriented firms from non-profit organizations?
A)​Profit-oriented businesses tend to focus their marketing activities on one public - their customers
B)​Not-for-profit organizations seek to generate revenues above and beyond their costs to make money for all stakeholders involved
C)​Not-for-profit organizations do not market tangible goods
D)​Profit-oriented businesses often operate as a monopoly in their industry

Quizplus · Accepted Answer

Profit-oriented firms focus on maximizing profits for their shareholders, while non-profit organizations have a mission to serve a particular cause or group, often without the goal of making a profit. Therefore, profit-oriented firms have a more narrow focus on their customers, while non-profit organizations typically have multiple stakeholders to consider. Option B is incorrect, as non-profit organizations are not primarily focused on generating profits for stakeholders. Option C is also incorrect, as non-profit organizations can market both goods and services. Option D may be true in some cases, but it is not a defining characteristic that distinguishes profit-oriented firms from non-profit organizations.

Which of the Following Is a Characteristic Which Distinguishes Profit-Oriented