In a word, the difference is profits, but the real difference is the approach to the structuring of the organization.
A for-profit business begins with sales. Even before a company is in business, the focus of the planning stage is sales: what is the market, who are the players, what is the competition, what is the gross margin, what is the pricing strategy, where will the products be sold, what will be the range of price, and many other similar questions.
A business plan will not get off the ground without a sales strategy. Once the strategy is discussed, then come the decisions about business form, product availability, personnel, capital structure, lenders, and pro-forma statements, to name a few.
In a for-profit business, the focus is with revenues and the ...
Solution Summary
The 482 word solution clearly defines the differences between for profit and not for profit. Included is the approach, the goals, the budgets and how to accomplish objectives. As an example, there are two cited mission statements quoted in the solution to demonstrate the vast difference in for profit and not for profit.
... Not-for-profit and governmental agencies attempt to maximize services based on the revenues ... The defining distinction, that is the profit-seeking goal, can ...
... 3.What is the defining distinction between for-profit... A "not for profit" organization is the one which is ... grounds other than running a profit making business. ...
... economist may not see any distinction between the ... is not true for non-profit hospital, however ... possibly more efficient than the for-profit facilities (Powell & ...
Government and Not-For-Profit Accounting. ... Internal service funds are accounted for similarly to businesses. ... and Discussion 1. What is the distinction, as drawn ...
... and uses by not-for-profits, care is ... Is there a distinction between pledges receivable and ... Can financial statement users of not-for-profit hospitals' financial ...
... LEGAL DISTINCTIONS AMONG OWNERSHIP FORMS. ... Another important legal distinction concerns election of boards of ...For-profit HCOs are a business that is expected to ...
... Thus, operating or non-operating distinctions can be made ... retains the requirement for not-for-profit organizations to ... an example of how a non-profit can work ...
Government and Not For Profit Accounting. ... 4: 1. What is the distinction between expenditures ... statement of activities closely resembles business-type accounting ...
... functions separately from the drive for profit, which is ... is to separate the risk assessment from profit. ... corporate America makes no such distinction, and SOX ...
