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Stels [109]
3 years ago
6

Describe the main differences for revenue spending between ""for profit"" companies and ""not for profit"" companies. Describe h

ow the main financial documents of Goodwill are similar to those companies that are ""for profit"". Describe how the main financial documents of Goodwill are difference to those companies that are ""for profit"".
Business
1 answer:
LenKa [72]3 years ago
8 0

Answer with Explanation:

<h2><u>Requirement 1:</u> </h2>

1. Profit Organization

The aim of profit organization is to maximize the wealth of shareholders by increasing its profits. The owners of the company get dividends and appreciation in the value as a return from the company.

2. Nonprofit Organization

The primary mission of Non-profit organization is to benefit the community by helping them and the earnings generation is not the primary goal of the company. ACCA is an entity that delivers quality education to its students and also earns profit on it but the profit margin kept is as low as possible to keep its operation running. Other examples are Rolex, NGO's, National Health Institutes, etc.

In other words, these institutes are for charitable purpose and their primary objective is not making profits.

Key Difference Between Profit Organization and Non-profit Organization​​​​​

  • A profit organization's primary objective is to maximize profits whereas the Non profit organizations work for delivering services and products that helps in uplifting the society from their donations.
  • A profit organization is registered as a sole proprietorship or partnership or a corporation. Whereas Non profit organization is registered as a charity club, association of person, trust, corporations, etc.
  • Usually major source of income of Non profit organization comes from donations, government and corporation grants, subscriptions, etc. Whereas the major source of profit organization is income generated from the sale of goods and services. Non profit organization - the major incomes are donation, grant, legacies, subscription, etc.

Requirement 2:

Profit making organization have to publish all financial statements which includes income statement, balance sheet, cash flow statement, statement of changes in equity, etc whereas the non profit organization only publishes balance sheet and cash flow statement. If the Non profit organization is involved in selling of products and services then the organization will also have to prepare income statement.

The non profit organization doesn't pays andy dividends as it is a charity firm and all it does is, it spends it money for the welfare of the community. Whereas the profit organization have to retain a share of earned profits and then distributes the remainder to shareholders.

The profit making organization publishes changes in equity statement whereas the charitable firm is not required to publish such things because its primary objective is to spend on the welfare of the community.

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A dentist decides to offer teeth whitening services to a target market. The dentist's marketers have to consider which character
andrew11 [14]

Answer:

D) intangibility

Explanation:

in this case, the whitening service offered by the dentist has an intangible characteristic since there is no tangible product or service that their potential customers can see, touch, taste, hear or smell. The service offered is something that the potential customers must imagine, i.e. they have to imagine how they would look like if their teeth were whiter.

6 0
3 years ago
Taylor company has current sales of 1,000 units, at a selling price of $190 per unit, variable costs per unit of $76 and fixed e
yaroslaw [1]
Let us calculate net profit on each unit; after the changes, we have that the company sells 1300 units and eah unit has a profit margin of 175-100=75$.We also have that the fixed costs are in total 96000-20000=76000$. Consider the profit function P(x) that depends on the number x of units sold. P(x)=75*x-76000. Substituting x=1300, we have that P(x)= 97500-76000=21.500$. This is the Net operating Income after the changes.
4 0
4 years ago
A _____ typically provides information so that an organization can make a decision about a product, procedure, or policy.
saw5 [17]

Answer:

A proposal typically provides information so that an organization can make a decision about a product, procedure, or policy.

7 0
2 years ago
Middle management is the intermediate management level accountable to top management and responsible for leading lower level man
Dimas [21]

Answer:

Middle Management

Which is not a typical function:

Middle management may be reduced in organizations as a result of reorganization. Such changes can take the form of downsizing," delayering," and outsourcing.

Explanation:

Options:

1. Middle management is at the center of a hierarchical organization, subordinate to the senior management but above the lowest levels of operational staff.

2. Middle managers are accountable to top management for their department’s function. They provide guidance to lower-level managers and inspire them to perform better.

3. Middle managers balance a functional or technical understanding of those who report to them with the interpersonal skills of a manager. This form of leadership requires a strong ability to communicate, mentor, train, hire, organize, optimize processes, and prioritize.

4. Middle-management functions generally revolve around enabling teams of workers to perform effectively and efficiently and reporting these performance indicators to upper management.

5. Middle management may be reduced in organizations as a result of reorganization. Such changes can take the form of downsizing," delayering," and outsourcing.

The last option (No. 5) is certainly not a function of middle management.  It is what happens to middle management during reorganization.

3 0
3 years ago
Robert Necco and Nelson Packard are economists at Economic Research Associates. ERA asks Necco and Packard for their opinions ab
Lorico [155]

Answer: B) Correct Incorrect

Explanation:

Whilst it was generally believed at some point that raising taxes and Government Spending by the same amount would have no effect, research has disproven this thought.

This is because it was shown that an increase in Government Spending leads to a larger increase in GDP than an increase in taxes reduces it.

This is because when the Government spends money, the Multiplier effect of Government Spending is always 1 more than that of the Taxes therefore raising taxes and spending by the same amounts still increases the Real GDP because Government Spending will create more income than taxes will take.

Necco is right, Packard is wrong.

8 0
4 years ago
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