Which of the following are possible reasons why there are nonprofit organizations?

Principles of Management
OER 2019th Edition
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax
Chapter16: Managerial Communication
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Which of the following are possible reasons why there are nonprofit organizations?
(please choose all that apply)
Select 4 correct answer(s)
Asymmetric information and a failure of trust
Nonprofit as for-profit in disguise
The altruistic-motive theory
The government-failure theory
Transcribed Image Text:Which of the following are possible reasons why there are nonprofit organizations? (please choose all that apply) Select 4 correct answer(s) Asymmetric information and a failure of trust Nonprofit as for-profit in disguise The altruistic-motive theory The government-failure theory
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A nonprofit organization can be defined as an entity which is driven by a commitment towards social cause in the area of education science, research, religion, art, sports, music and more. The revenue earned by a nonprofit organization is not distributed to shareholders similar to the for-profit corporations, but are further used in fulfilling the social targets. The key requirement of forming a nonprofit organization is serving the public.

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