Question

Which of the following are true of nonprofit organizations?

A) They may operate in the private sector.
B) Their purpose is to offer services to clients.
C) They are primarily focused on serving shareholders.
D) They are controlled by the government.

Answer 1

Nonprofit organizations can exist within the private sector and focus on servicing clients through charitable, educational, or religious programs. They are not primarily focused on serving shareholders and are not controlled by the government.

Step-by-step explanation:

Nonprofit organizations operate for various reasons beyond that of making a profit, serving public or mutual benefits rather than the external interests of shareholders. These organizations can function within the private sector and often focus on providing services to clients, such as charitable, educational, or religious activities.

Nonprofits are structured similarly to corporations in that they can have an unlimited life, the ability to borrow money, and can hire qualified employees to achieve their mission. They may operate on volunteer service and have the power to influence policy making through lobbying and public education.

However, unlike corporations that serve the interests of shareholders, nonprofit organizations reinvest any surplus funds into their operations to further their social objectives. They are not controlled by the government, although they may receive grants and must adhere to specific regulatory requirements.