PRC-3 · Chapter 2 · Question 23 of 61
Which of the following is a primary characteristic of a Not-for-Profit Organization (NGO)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) It generates a surplus that must be reinvested into its social cause
Explanation
NGOs do not distribute profits to owners; any financial surplus generated must be retained and used to further the organization's charitable or social goals.
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