QUESTION 1 Which of the following is NOT a reason for which

QUESTION 1 Which of the following is NOT a reason for which a not-for-profit organization would need to generate a surplus? O A Retire debt. OB. Continue a program beyond the period that initial funding is provided. C. To pay bonuses at year end. O D. Expand or replace physical facilities

Solution

Question 1

Not for profit organization does not earn profits for its owners. All of the earned money by the organisation or the donation received are used in pursuing/attaining the organization\'s objectives/goals of publicwelfare and keeping it running and operational .

Hence , the suplus cannot be generated to pay bonuses at year end . ( OPTION - C )

( Asper Chegg policy first question has been answered )