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Budgeting: Non-Profit vs. Profit

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How does using a budget differ between a government and a for profit entity?

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The budget is used with a different focus, as the profit focus is different in each type of entity. In a for-profit entity, the focus remains on generating a profit. In a government and/or non-profit entity (because not all non-profit entities are under the government realm), the focus is centered on having enough cash flow ...

Solution Summary

This solution explains how and why budgeting is different for governmental and/or non-profit entities versus for-profit entities.