Public schools, charities, and government agencies generally (CH 1)
A do not have any stakeholders.
B provide goods rather than services.
C have the same goals as for-profit businesses.
D do not seek to earn a profit.
The correct answer and explanation is :
The correct answer is D: do not seek to earn a profit.
Explanation:
Public schools, charities, and government agencies are typically considered non-profit organizations. These entities are focused on serving the public interest and meeting societal needs rather than generating profits. Let’s break this down in more detail:
- Public Schools:
Public schools are funded primarily by taxpayer dollars and are intended to provide education to students. Their goal is not to earn a profit but to ensure that all students receive an education. The focus is on quality education, access for all, and student development, rather than financial gains. - Charities:
Charities are non-profit organizations that aim to address social issues, provide aid, or promote specific causes (such as health, education, or disaster relief). Their primary objective is to benefit the community and improve quality of life for those in need, not to make a profit. Any funds raised by charities are used to further their mission, not distributed as profits. - Government Agencies:
Government agencies (federal, state, or local) are established to serve the public by managing and regulating various sectors such as health, transportation, and public safety. These agencies are funded by taxes and are designed to provide services rather than generate profit. The services they offer are often essential for the well-being of the population, including infrastructure, law enforcement, and social services.
Why the other options are incorrect:
- A: Do not have any stakeholders — This is false. Public schools, charities, and government agencies all have stakeholders. For example, schools have students, parents, teachers, and the broader community; charities have donors, beneficiaries, and volunteers; and government agencies have citizens, elected officials, and employees.
- B: Provide goods rather than services — This is not correct because these organizations primarily provide services rather than goods. Public schools provide educational services, charities provide support and aid, and government agencies offer services like healthcare, law enforcement, and public works.
- C: Have the same goals as for-profit businesses — This is incorrect. For-profit businesses aim to maximize profits for their owners or shareholders, while public schools, charities, and government agencies focus on public welfare and social objectives rather than financial profit.
Thus, the correct answer is D: do not seek to earn a profit.