Differentiate between non-profit organizations and typical business enterprises.

Question

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Answer 1

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 11, Problem 1Q

To determine

Differentiate between non-profit organizations and typical business enterprises.

Expert Solution & Answer

Explanation of Solution

Non-profit organizations are privately held corporations that do not provide financial benefits to their members or creditors and are formed for public or mutual benefit other than to generate profits for shareholders or investors whereas a business enterprise is a for-profit entity associated with the production, selling or distribution of goods or services. A business enterprise may be organized as a sole proprietorship, a partnership, a corporation, a limited liability company or any other form of business association.

Non-profit organizations are fundamentally different from business enterprises.

They receive a significant portion of their income in the form of donations from individuals who do not request a monetary payment in return (i.e. non-exchange transactions), their business purpose is to provide a social benefit, not solely to provide goods or services for profit, and they do not have the right to do so.

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Answer 2

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 11, Problem 1Q

To determine

Differentiate between non-profit organizations and typical business enterprises.

Expert Solution & Answer

Explanation of Solution

Non-profit organizations are privately held corporations that do not provide financial benefits to their members or creditors and are formed for public or mutual benefit other than to generate profits for shareholders or investors whereas a business enterprise is a for-profit entity associated with the production, selling or distribution of goods or services. A business enterprise may be organized as a sole proprietorship, a partnership, a corporation, a limited liability company or any other form of business association.

Non-profit organizations are fundamentally different from business enterprises.

They receive a significant portion of their income in the form of donations from individuals who do not request a monetary payment in return (i.e. non-exchange transactions), their business purpose is to provide a social benefit, not solely to provide goods or services for profit, and they do not have the right to do so.

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Answer 3

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 11, Problem 1Q

To determine

Differentiate between non-profit organizations and typical business enterprises.

Expert Solution & Answer

Explanation of Solution

Non-profit organizations are privately held corporations that do not provide financial benefits to their members or creditors and are formed for public or mutual benefit other than to generate profits for shareholders or investors whereas a business enterprise is a for-profit entity associated with the production, selling or distribution of goods or services. A business enterprise may be organized as a sole proprietorship, a partnership, a corporation, a limited liability company or any other form of business association.

Non-profit organizations are fundamentally different from business enterprises.

They receive a significant portion of their income in the form of donations from individuals who do not request a monetary payment in return (i.e. non-exchange transactions), their business purpose is to provide a social benefit, not solely to provide goods or services for profit, and they do not have the right to do so.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 11, Problem 1Q

To determine

Differentiate between non-profit organizations and typical business enterprises.

Expert Solution & Answer

Explanation of Solution

Non-profit organizations are privately held corporations that do not provide financial benefits to their members or creditors and are formed for public or mutual benefit other than to generate profits for shareholders or investors whereas a business enterprise is a for-profit entity associated with the production, selling or distribution of goods or services. A business enterprise may be organized as a sole proprietorship, a partnership, a corporation, a limited liability company or any other form of business association.

Non-profit organizations are fundamentally different from business enterprises.

They receive a significant portion of their income in the form of donations from individuals who do not request a monetary payment in return (i.e. non-exchange transactions), their business purpose is to provide a social benefit, not solely to provide goods or services for profit, and they do not have the right to do so.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 1Q

To determine

Differentiate between non-profit organizations and typical business enterprises.

Expert Solution & Answer

Explanation of Solution

Non-profit organizations are privately held corporations that do not provide financial benefits to their members or creditors and are formed for public or mutual benefit other than to generate profits for shareholders or investors whereas a business enterprise is a for-profit entity associated with the production, selling or distribution of goods or services. A business enterprise may be organized as a sole proprietorship, a partnership, a corporation, a limited liability company or any other form of business association.

Non-profit organizations are fundamentally different from business enterprises.

They receive a significant portion of their income in the form of donations from individuals who do not request a monetary payment in return (i.e. non-exchange transactions), their business purpose is to provide a social benefit, not solely to provide goods or services for profit, and they do not have the right to do so.

Answer 6

Chapter 11, Problem 1Q

To determine

Differentiate between non-profit organizations and typical business enterprises.

Expert Solution & Answer

Explanation of Solution

Non-profit organizations are privately held corporations that do not provide financial benefits to their members or creditors and are formed for public or mutual benefit other than to generate profits for shareholders or investors whereas a business enterprise is a for-profit entity associated with the production, selling or distribution of goods or services. A business enterprise may be organized as a sole proprietorship, a partnership, a corporation, a limited liability company or any other form of business association.

Non-profit organizations are fundamentally different from business enterprises.

They receive a significant portion of their income in the form of donations from individuals who do not request a monetary payment in return (i.e. non-exchange transactions), their business purpose is to provide a social benefit, not solely to provide goods or services for profit, and they do not have the right to do so.

Answer 7

Chapter 11, Problem 1Q

To determine

Differentiate between non-profit organizations and typical business enterprises.

Answer 8

Expert Solution & Answer

Explanation of Solution

Non-profit organizations are privately held corporations that do not provide financial benefits to their members or creditors and are formed for public or mutual benefit other than to generate profits for shareholders or investors whereas a business enterprise is a for-profit entity associated with the production, selling or distribution of goods or services. A business enterprise may be organized as a sole proprietorship, a partnership, a corporation, a limited liability company or any other form of business association.

Non-profit organizations are fundamentally different from business enterprises.

They receive a significant portion of their income in the form of donations from individuals who do not request a monetary payment in return (i.e. non-exchange transactions), their business purpose is to provide a social benefit, not solely to provide goods or services for profit, and they do not have the right to do so.