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What is the major distinction between organisations?

Explain what happens in each and provide one goal.

User MVafa
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Final answer:

Organizations differ mainly in their orientation towards making a profit or supporting a social cause, with their goals aligning accordingly. Profit-oriented organizations aim to increase financial gains, whereas non-profits strive to achieve positive societal impact.

Step-by-step explanation:

Understanding Organizational Distinctions

Organizations are entities structured to meet specific objectives, and they vary in many ways. One major distinction is between profit and non-profit organizations. A profit-oriented organization's main goal is financial gain, providing goods or services to consumers for revenue that exceeds its costs, leading to profits for its owners or shareholders. Non-profit organizations, conversely, focus on a specific social cause or advocacy, with the goal of impacting society positively rather than generating a profit. These non-profits reinvest any surplus revenues into the organization's mission.

Examples of Organizational Goals

For a profit-oriented business, a common goal could be to increase market share within a certain industry by 5% within the next fiscal year. For a non-profit organization, a goal might be to reduce homelessness in a community by 10% in the next five years through various programs and advocacy.

User Douglas Mayle
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