Answer to Question #8822 in Economics for nelly

Question

Describe the role of business in the economy.
Compare and contrast the roles of for-profit and nonprofit organizations in the economy

Answer 1

Businesses are the growth engine of the most successful economy.

For-profit organisation is a business or other organization whose primarygoal is makingmoney (a profit), as opposed to a non profit organization which focuses a goal such as helping the community and is concerned with money only as much as necessary to keep the organization
operating. Most companies considered to be businesses are for profit organizations; this includes anything from retail stores to restaurants to insurance companies to real estate companies.

Read more: https://www.businessdictionary.com/definition/for-profit-organization.html#ixzz1tkJ8KWNw
A nonprofit organization (NPO) is an organization that uses surplus revenues to achieve its goals rather than to distribute them as profit or dividends. States in the United States defer to the IRSdesignation conferred under United States Internal Revenue Code Section 501(c), when the IRS deems an organization eligible.^[1]
While not-for-profit organizations are permitted to generate surplus revenues, they must be retained
by the organization for its self-preservation, expansion, or plans.^[2] NPOs have controlling members or boards. Many have paid staff including management, while others
employ unpaid volunteers and even executives who work with or without compensation (occasionally nominal).^[3] Where there is a token fee, in general, it is used to meet legal requirements for establishing a
contract between the executive and the organization.
Designation as a nonprofit and an intent to make money are not related in the United States. This
means nothing can be conferred by the declaration. It is unclear whether or not
this holds outside of the U.S. In the United States, such inference is the
purpose of the Internal Revenue Code, Section 501(c). The extent to which an NPO
can generate surplus revenues may be constrained or use of surplus revenues may
be restricted.