Answered: What are some of the main similarities…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Related questions

Concept explainers

Question

What are some of the main similarities and differences between for-profit and nonprofit ventures?

Give one specific example that highlights that difference from a nonprofit and for-profit organization of your choosing.

Expert Solution

Step 1: Differences

The differences between the two type of ventures are as follows:

The main goal of for-profit ventures is to make profits from the products and services they provide to their customers. Whereas, non-profit ventures do not focus on making profits and instead support a social cause or stand for a particular viewpoint.
With bank loans, local shareholders and income earned from sales, for-profit companies tend to fund their initial activities. By looking for private contributions of resources and time, corporate sponsors, and government money, among others, nonprofits mostly take a different path. As of lately, crowdfunding, a form of online fundraising, has also become a common funding tool for nonprofit groups.
The target audience is more defined in for-profit than non-profit ventures.
The atmosphere of for-profit organisations continues to concentrate on finance and market measures, like performance measures (KPIs), because of the objective of financial benefit. The mindset of a non-profit is much more community-oriented, as workers are often expected to fix challenges that have no or less monetary gains.
For-profit ventures have to pay taxes to the government whereas non-profit ventures can take advantage of the tax benefit they get from the government.

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.

Similar questions