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The two types of corporations are

Multiple choice question.
a. profit and not-for-profit.
b. government and nongovernment.
c. federal and state.
d. investing and financing.

1 Answer

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Final answer:

The two types of corporations are profit and not-for-profit, where profit corporations aim to generate profits for shareholders, and not-for-profits serve community needs and reinvest any profits back into their services.

Step-by-step explanation:

The two types of corporations are profit and not-for-profit. Profit corporations are businesses that operate with the aim of making profits for their shareholders while not-for-profit corporations perform services not necessarily to make a profit, but to serve their members or broader objectives.

Such non-profit organizations may include welfare groups, churches, hospitals, schools, and civic organizations, all of which are structured similarly to a corporation but are set up with different goals, not being profit-driven. Profits made by non-profits are typically reinvested into the organization to expand and provide more services, as they fulfill a societal need rather than distribute profits to shareholders.

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