Purchase Solution

Distinction between for-profit and not for profit business

Not what you're looking for?

Ask Custom Question

I just need to understand the difference.

Purchase this Solution
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.

Solution Preview

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 ...

Purchase this Solution
Free BrainMass Quizzes
MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Motivation

This tests some key elements of major motivation theories.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

View More Free Quizzes
Related BrainMass Solutions

  • defining distinction between not-for-profit; more efficient

    465871 Not-For-Profit vs. For-Profit Businesses: What is the defining distinction between for-profit businesses and not-for-profit entities, including governments? In your opinion, which is run more efficiently and why?

  • Differences in Revenues/Gains; Expenses/Losses

    194740 What is the major distinction between revenues and gains, expenses and losses? What is the major distinction between revenues and gains? What is the major distinction between expenses and losses?

  • Government and Not-For-Profit Businesses

    2.Why is the budget a far more important document in both governments and not-for-profits than in businesses? 3.What is the defining distinction between for-profit businesses and not-for-profit entities, including governments?

  • Characteristics of each business entity

    Prepare a summary isolating what you think are the TOP 5 differences between any of the business entities. -Sole Proprietorship: The business entity is owned by one person, and there is no legal distinction between the owner and the business.

  • Funding Sources for Higher Education

    Can a business such as a university or hospital truly be nonprofit? Think about the nonprofit institutions you may be familiar with. First, the most difficult distinction would be between funding from parents and students.

  • How does a corporation compute earnings and profits (E&P)? W

    What deductions are allowed for taxable income purposes but denied for E&P? 2. Distinguish between current and accumulated earnings and profits. Why is it important to make this distinction? 1.

  • Managerial Accounting and Financial Statements

    However, looking from the managerial perspective, we can say that there is a difference between profit margin and the controllable contribution margin. This distinction is important in differentiating between management performance versus viability.

  • Computation of Profit Maximizing Price level and Output

    By using these functions, the profit maximizing price level and output level are evaluated. Further, the distinction between the output level that minimizes the average cost and, the profit maximizing output level is also illustrated in the solution.

  • Is there a difference between the legal forms of conducting

    A SP is seen as one with the business, there is no distinction between owner and business. He or she "is" the business. The owner files a Schedule C with their annual 1040. Another common legal form of entity is a partnership.

View More Related Solutions