Title: For-Profit vs. Non-Profit
Course: Demo 1

Q: The primary goal of a for-profit business is to ________ .
- contribute to society
- fulfill its mission
- maximize profits for shareholders
A: maximize profits for shareholders

Q: The primary goal of a non-profit business is to ________ .
- maximize profits for shareholders
- invest in its employees’ development of new skills
- use its revenues to further its mission
A: use its revenues to further its mission

Q: Both for-profit and non-profit organizations can ________.
- have a charitable tax status
- have shareholders
- earn revenues
A: earn revenues

Q: Which of the following is/are example(s) of a for-profit organization?
- Internal Revenue Service
- Make-a-Wish Foundation
- Walmart
A: Walmart

Q: Which of the following is/are an example(s) of a non-profit organization?
- eBay
- Netflix
- United Way
A: United Way

Q: Sasha was exceptional at organizing educational events in her community. As friends and professional contacts were asking for more of her time and expertise she decided to start a business with the mission of improving the performance of students in grades K-12 in her community. After significant analysis of her options, Sasha decided to create a NON-PROFIT BUSINESS because:
- the non-profit designation prevented her from earning revenue, allowing her to focus only on the mission of the business.
- she could own the non-profit business and earn some profits that she would use for her own benefit.
- she can use the revenue to further the mission of her business.
A: she can use the revenue to further the mission of her business.

Q: Sasha was exceptional at organizing educational events in her community. As friends and professional contacts were asking for more of her time and expertise she decided to start a business with the mission of improving the performance of students in grades K-12 in her community. After analyzing her options, Sasha decided to create a FOR-PROFIT BUSINESS. Which of the following reason(s) would justify this decision?
- She is committed to using surplus revenues to further the company mission, rather than distributing profits or dividends.
- She could still receive tax-free charitable contributions.
- She could bring in other owners who would invest in and share in her profits and success.
A: She could bring in other owners who would invest in and share in her profits and success.

Q: Varvitsiotis Architecture is a commercial architecture company founded in 1996 by two brothers. As the company grew they took on additional partners and eventually sold stock in the company. By 2010 they had six employees, $500,000 in annual revenue, five projects under way, and plans to reinvest profits to fund significant growth. Based on the information provided about the company, what type of organization is Varvitsiotis Architecture?
- non-profit
- benefit corporation
- for-profit
A: for-profit

Q: Petite Palate was a gourmet baby food company founded in 2006 and was growing until the fall of 2008 when potential investors in the company pulled out because they were concerned about the weakening economy and chose to make fewer outside investments. Based on the information provided about the company, what type of organization was Petite Palate?
- non-profit
- benefit corporation
- for-profit
A: for-profit