Final answer:
Public schools, charities, and government agencies are not classified as businesses as they focus on serving the public good rather than pursuing profit. They are funded through tax dollars or donations and reinvest any surplus to improve services.
Step-by-step explanation:
Public schools, charities, and government agencies are not classified as businesses because they do not pursue commercial or profit-driven objectives. Unlike private-sector firms, these entities generally aim to serve a public good, such as education or health, without the intent to generate profits for distribution to owners or shareholders.
Instead, government agencies raise revenue through tax dollars and are not subject to market competition, meaning that if they perform poorly, they do not face the threat of bankruptcy as private companies do. Non-profit organizations, including charities and public schools, may provide services and could potentially earn revenue, but any surplus is typically reinvested into the organization to enhance their offerings or reach, rather than being distributed as profit.