Download For-profit/Nonprofit Exam Review

For-profit/Nonprofit
Exam Review
FUTURES OF BUSINESS AND MARKETING
1.Ultimately, a for-profit business is:
a. A business or institution not established for the
purpose of making a profit; not entered into for financial
gain.
b. A business or institution established for servicing
humanity.
c. A business or institution initiated or operated for the
purpose of making a profit.
d. A business or institution initiated for providing a
particular service to a community.
1.Nonprofit organizations raise capital by using
government and private grants, and soliciting
donations from businesses and individuals.
a.True
b.False
1. Excess cash remaining after all of a
business’ expenses have been paid for is
called:
a. Revenue
b. Profit
c. Cash Reserves
d. Savings
1.Which form of business may raise money by
offering investors a percentage of ownership in
the company?
a.For-profit Business
b.Nonprofit Business
1.Give one type of for-profit business industry and
one type of nonprofit business industry, and give a
specific example (company name) of each.
1.How are the assets of a for-profit organization distributed if
the business were to dissolve?
a.The assets of the company are distributed to the owners
of the business according to their ownership interest.
b.The assets of the company are confiscated by the
Internal Revenue Service (IRS).
c.The assets of the company are donated to another entity.
d.The assets of the company are distributed equally
amongst the employees and interns of the organization.
1. In a complete sentence, explain the difference
between hourly and salary paid employees.
1.Which form of business uses all income for
programs and services aimed at meeting
people’s unmet or under-met needs, such as
food, water, shelter, education, or other issues?
a.For-profit Business
b.Nonprofit Business
1.For-profit organizations are granted a federal or
state tax exemption. And, furthermore, are not
required to pay taxes on any property owned by
the company.
a.True
b.False
1.Which form of business usually employs
a small workforce and/or a large corps of
volunteers?
a.For-profit Business
b.Nonprofit Business
1.Owners of for-profit businesses may also
decide to share some of it with employees
through the use of various types of
employee benefit plans. Give an example
of an employee benefit.
1.What is considered to be the “life-blood”
of a for-profit business?
a.Charitable donations from businesses
and individuals
b.Sales revenue in the form of cash and
receivables
c.Government and private grants
d.Credit agreements with lenders and
suppliers