Question

The American Red Cross and the American Medical Association are nonprofit businesses. This is because they: A. plan to make a profit by selling services to other countries. B. exist to benefit a cause but not to make a profit. C. share profits with top management but not with workers. D. sell services directly to customers to make a higher profit.

Answer 1

Answer:B  exist to benefit a cause but not to make a profit.

Explanation:

They are to provide services which are useful to the members of the society at large.  They exist to promote the interest of members of the public which are social in nature.  With a view to ensure the smooth running of the organisation some individuals are elected to run the organisation in the position of chairman, secretary, and treasurer.  They do prepare receipt and payment account which is similar to cash account while some do prepare income and expenditure account which is similar to profit and loss account.