Question

Governments and nonprofit entities are similar in many ways. Which of the following statements is not true?

a. Both governments and nonprofit entities often report restricted resources.
b. Both governments and nonprofit entities provide services.
c. Both governments and nonprofit entities assess taxes.
d. Neither governments nor nonprofit entities have a profit motive.

Answer 1

Governments and nonprofit entities are similar in many ways, but nonprofit entities do not assess taxes.

Step-by-step explanation:

Of the statements provided, the statement that is not true is c. Both governments and nonprofit entities assess taxes.

This statement is not true because while governments do assess taxes, nonprofit entities do not have the authority to assess taxes. Nonprofit organizations typically rely on donations and grants to fund their activities, rather than collecting taxes from individuals or businesses.