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18) Which statement best describes the most significant difference between a for-profit organization or a business firm and a nonprofit organization? A) Business firms earn a profit each year while nonprofits operate at a deficit annually. B) Nonprofit organizations do not carry on economic activities while business firms do. C) Nonprofit organizations are concerned with social issues and business firms are not. D) Both serve customers, but business firms seek a profit while nonprofit organizations do not. E) Nonprofit organizations are publicly owned and business firms are privately owned. Answer: D Explanation: A business firm is a privately owned organization that serves its customers in order to earn a profit so that it can survive. A nonprofit organization is a nongovernmental organization that serves its customers but does not have profit as an organizational goal. Difficulty: 2 Medium Topic: Nonprofit Marketing Environment Learning Objective: 02-01 Describe three kinds of organizations and the three levels of strategy in them. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 19) An example of a nonprofit organization is A) the Food and Drug Administration. B) CVS Pharmacies. C) the medical technology company Medtronic, Inc. D) the pharmaceutical company Pfizer, Inc. E) the American Red Cross. Answer: E Explanation: The American Red Cross is a nonprofit, nongovernmental organization that serves its customers but does not have profit as an organizational goal. Difficulty: 3 Hard Topic: Nonprofit Marketing Environment Learning Objective: 02-01 Describe three kinds of organizations and the three levels of strategy in them. Bloom's: Apply AACSB: Knowledge Application Accessibility: Keyboard Navigation

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Test Bank for Marketing 14th Kerin  

Test Bank Marketing 14th Edition Kerin 2019 (Test Bank Download) (9781259924040) (1259924041). Instant access. All chapter are included. All...

Test Bank for Marketing 14th Kerin  

Test Bank Marketing 14th Edition Kerin 2019 (Test Bank Download) (9781259924040) (1259924041). Instant access. All chapter are included. All...