The CA Hub

PRC-3 · Chapter 1 · Question 29 of 61

The Red Cross provides emergency medical relief during natural disasters. While they handle millions of dollars, what differentiates their primary objective from a commercial hospital?

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: C) Their primary goal is social welfare, not traditional profit distribution

Explanation

Not-for-profit organizations prioritize social, charitable, or educational goals over the traditional commercial objective of earning a profit for owners.

All 61 questions in Chapter 1Nature of Business MCQs with answers

More Nature of Business MCQs

Sponsored slot availableRun a CA academy or hiring firm? Put your name in front of students preparing for this exam.Advertise →