which-of-the-following-is-likely-not-a-type-of-not-for-profit-entity-a-public-library-b-community-fo

Question

Which of the following is likely not a type of not-for-profit entity?
A. public library
B. community foundation
C. university
D. local movie theater

Puneet Prajapati · Accepted Answer

Okay, so let&#x27;s understand our car dissolution. Okay, so there are two types of entities. Basically, you can also tom them as business entities. Business entity. Okay, so there is a purpose. Like why I am writing. They visit, complete with Director Philip and exercising company with the green kids. Let&#x27;s suppose you are willing to you&#x27;re going to start a business without but I&#x27;m any motivation to only profit. Like you want to be very, very successful in the future. So you want you are saying that there is a huge demand in the market, So there is a huge demand in the market for the phones, electronics products and likewise, So you are you are willing to start a company with a name off a physical blue. However, with the sole intention off profit making Bumpass profit making book this and what&#x27;s your business? Let Dani bullets like purchasing the chronic problems and selling those products to the customers at higher rates. So you get up. You know how much of the coffered Okay, we&#x27;re eyes. So who musically we have a profit? We have ABC company with the profit making purpose and they visit companies dealing in an aquatic products. Okay, We asked. We have expensive company or expressing company on so but it is It is, you know, very kind in serving the purpose of the society night. Yes, it is providing three glasses and food. Who? Public at large. Okay, No. So it does not have a non profit making purpose. Okay, Non profit, but was nonprofit pump was okay. So now what we have did I typed that that that business and you can be segregated into two types of entities. 1st 1 is this one ABC complete, like profit making purpose, and the second is expressing company. Now for the current caution be the potion has asked us that which of the following options is in our segregated, non profit, non profit making entities. So out of the correct option, out of the gear give injustices, we will have a choice that is no less local theater, local theater for what purpose it doesn&#x27;t established. It has established toe a profit because it knows that the launching off new movies on Do you not hear the shows will never go will never be going. Okay, so that is why be hankering choice for problem is Okay, the for I would probably miss the by that. So because local theater will only ever by postal on the profit and not for but not for serving the society at large. Okay, you also can you not know down this example so that you can get a your idea that how we have arrived at our solution? So that&#x27;s all we have a solution. Choice, Eric, Choice as D. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand that What is the actual meaning off government agents? They very well know that. What is the actual meaning of government? However we&#x27;ve been dealing get up Meaning off into reverse. You win establishment, which has a sole purpose. Who saw the various needs for safety through the collection off because it revenue strong the public info. Yeah. Mexes these energy. Okay, so what? We have guard in our definition. First of all, it has. It is an establishment. Okay, which has a soul but was to serve the various needs off society. Or so we can also deride the meaning that it does not has the government. A government agency does not ask any purpose to only profit. Okay, but how does it solve the needs of the society through the collection? Off big, particularly new from the public. Inform off axis fees. Impolitic. Oh, sorry. It&#x27;s more so I will get. I will give you a better example to understand this definition, however you will you need to write this definition so that you can get the idea that how our example is going. Let&#x27;s use a force. There is a government agency G company. Okay, so what? It does you eggs? It collects the revenue. It collects the taxes, Benedetti on income off every person. Okay. It was in case off a a Mr Lead. So it is g complicity covering backsies. Maybe on income off mystery. Know what, Mr. So what is the response will be articulating the revenues from the public. It has to establish established that sources which wouldn&#x27;t need society needs. Okay, because this very clearly in four days the society needs that. Just understand this infested ship bridge Heidi&#x27;s. Okay, box. The Ming schools that make hospital says head gear. Okay. Has given safe be education. Various, various, this let this list is not exhaustive. Okay? But however, you can get a sense in that part of the basics writing needs. So now what is the sole purpose of this G country collecting Texas from Mr. Okay, I&#x27;m establishing the various sources, which will mean the society needs Okay, So from this, we can we have the right of a solution. So the correct choice for our problem is be okay in B enjoys B. What is the option? ISI, using X performs, who service the needs of this exciting. Okay, So this is the solution for our given problem based on the analysts we have just discussed. Okay, We have just seen you. Will. You can also brought this diagram so that you can get clarity that what is the definition we have created on? First page is saying Okay, but however acting confuse it. And that was it for me. We have a solution as Joyce. Be okay. That&#x27;s all for the solution. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand the current solution approach to the example. Okay, so let&#x27;s suppose we have a company, ABC, okay? And there is a different company. Okay, let&#x27;s make our example earlier. So you will get a back, and not often, okay. The ABC company invite I have returned ABC company with the right man. You will get a sense of it. I just don&#x27;t understand that. Okay? Expressing. Come. So there is a purpose. That&#x27;s why I am writing a book. Both the names of companies with different colors and everything. So the a musical me is driven by the profit motivation. Let&#x27;s suppose, did you have you have a very, you know, very keen desire toe all profit and be successful in future. Okay, so you are going to start a business with a profit motivation. Okay, So this a busy company, you have started a business known as just being in selling force. Okay, So a physical me will have a primary purpose off making profit from this society. Okay? It will not. It will not pay much attention. The you know, the roll off organization to serve the community as a whole like it is very likely for a disc of people conduct social purpose campaigns for the society like it will be very, very less interested in in serving the purpose of the society. Okay, by that. So because it has been established to a deep profit, okay, and north for serving them. But not but not first, having the society well as we have exciting company, which which has a purpose off non profit making get so what they expressing Come lead us three Do Shin&#x27;s and glasses underprivileged students. Okay, so expecting company has been established for this purpose. The whole purpose of establishing express the company is this way so conclusively they can say the exciting companies are non profit making organisation like it does not have a soul sole purpose to on the profit. Okay, so this is the This is the basic difference. We have come across in, you know, segregating the types of entities. So there are two types of entity. 1st 1 is this one second, this one. So you can know down this example. Okay, what about the revision? Three exams also. So the ocean is us. That what is the type of community that will solve. The part was off. This is a thing. So this is for profit motive. This is my property. However, this is for non offered movement. So what is our correct choice? The correct choice for but involving a maze is being by that. So because in B, there is a non profit entity. Okay, So nonprofit entity will have a soul more big toe. So the purpose of this society who saw this was I d having various types of requirements in terms of education in terms off social Security and health and safety. Various. Various. So that&#x27;s all for our solution. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s start good in solution. Okay, So first of all, we will understand the meaning of steak left, and we will move over Means additional, so steak, it defies toe. Oh, person. Oh, a group of persons or any legal entity Ridges hoarding any type off my nine chilling pressed in the particulate organization. Okay, so what we have in front of us that the definition differs, which is vicious, stating the meaning off stakeholder. Okay, so steak orderly. First to a person on a group of persons or any night of legal and pretty. So you understand the meaning of person. A group of persons? Of course. But what is a legal entity? Legal entity? You can understand, Let&#x27;s say, a sole proprietorship a partnership from or accompanying okay, established as per the statue or local regulation off that country. Okay. Which is worrying any type of financial interest, any type of financial interest in that particular organization. Let&#x27;s if financial interest means leg. Let&#x27;s suppose a lender a lender means a person who gives loaned your business well, like you to have a financial interest in that company. Okay? The employees off the company will have a financial interest under which they are employed. Okay, good. He does who have advanced their money to work. Particular company will have a financial interest in those companies. Okay, so please know down these definitions. So who got a clear meaning off precaution as well as the solution we have derived. Now the question is as those which off the falling is not out clear. Meaning off the stay quarter. Okay, so, out of the out of the options available business is another in the street. Will not the Lord ever the Lord be considered at the stakeholder? Okay, so So the correct choice for your problem is e Okay, my feet. Because all of the options except e, we&#x27;ll have often until interested. E organization like lenders, creditors, employees. Okay, another one also, but not the business. Let&#x27;s suppose there is a company operating in cement industry like it is dealing and cemented industry. Okay, but Daddy&#x27;s up B company, which provides restaurant services. Okay, So you can understand that B company will never, ever likely to compute whether they can provide that. So because there businesses are different, like the both of them will not think about completing the teacher that also. So this is far. This is very, very concerned with controlling that. The big companies will not help. Will not be considered as a stakeholder in a company. Okay, No state quarter. You can write it now. This example in a notebook. Get up. You know, conclusive meaning off the solution. Okay, so that&#x27;s all for our solution. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand other current solution. OK, so the evil first understand the meaning off steak ordered up. Okay. It is a person or any legal entity holding financial intrest in a particulate engineer. Okay, so we can we can understand our solution through the deaf it through this definition, like stakeholder, maybe a person or any type of legal and pretty so we can and we understand the meaning of persons. Okay. It&#x27;s just an individual like you win me like everyone else. Okay? But where that means legal entity, the North&#x27;s too, Uh, you know, a particular back. Now she form, or we can say, a company established under the local regulations off a country, Okay, like there are very, very big corporations. Like we can say, many big corporations, which makes cell phones or search indians. Nowadays, you use very, very well okay that those companies or partnerships forms are legal and be specifically holding financial interest in a particular entity. No, what is often injured and just it is just the okay, the amount basically like that to suppose we video three an example so that you can understand back specter like Alexis supposed there is Ah Xing company. And there is a Linda along. That is a person who lends the money like the accent company Gin bottle. Borrow money from Linda. Okay, let&#x27;s see, Mr E. So Linda has a soul, and that is having off financial interesting accent company because he has to take his money back. Okay. Employees also like this. Certain persons, a certain amount off number of persons are employed in excellent company. They are likely to receive their severally salary against against the world that has been done. Indexing couple. Okay, so they are expecting their salary. Okay, So exam company would also be them that salary, so as being an employee employees off the extent dumpling will will be very, very likely to have financial interests next in company against with creditors. Also, it doesn&#x27;t like you do receive them all. They have advantaged within company. Okay, So practice for that is for the current example has been framed too, to give a direction that how to reach the solution. Okay, So, out of the given options in the ocean, the correct choice for problem is e by that. So because in case off e, that is up. There&#x27;s auction doctors, a business in another industry. Okay. Our business, operating in another industry, will very will. Never, ever likely to have a need. I&#x27;ve often initial interest in any other business operating in a different industry. Okay, that sounds very, very technical definition. So I will simply right through example. Let&#x27;s suppose we have and company, and this is being dumped. Okay. In company VOCs in construction. Okay. And being company works in for nature. So as a common sense, can you can you You can in front very easily. They&#x27;re both off them will never likely to compete with each other. Okay, Is there if if they will never likely you compete with each other. Okay, So being B company as well as a complete will not likely to have any type of financial impressed in each other in each other. Okay, that is right. The current solution, the current solution for our given problem is e Okay, that&#x27;s the solution. You can write. This is example the first sheet. This isn&#x27;t technical definition and second sheet. Also, you can note these three ships in your workbook. You get a clear meaning off the question as well. A solution. That&#x27;s all for the solution. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand the final solution. Okay. So before we were in the main solution, we will understand that what the public accounting forms do you know what type of service is of little comfort from side writing? So lovely accounting firms comprise off CP that this 30 fight of legal something see being qualified professionals Cooper light auditing compliance due diligence, ex murder uncertainty services. Okay with the place. Okay, so this is what we have the but was And what are the public accounting firms? So a public it on being phone will have will have CB qualified professionals. You most of all, we will drop for example, in Mr Ended back of accounting for Let&#x27;s suppose the name of public accounting firm that it is a physical. Now there&#x27;s CP qualified professionals. Okay, a CBE qualified professional. Will will levy an individual like Mr A Okay. On Mrs What? I would okay, CB one. So there are a number off However there are. There are limits that how How many CDs can be enough of little on being from but still. So let&#x27;s support There are three cp is in Okay. These cp either collectively, jointly individually Rubei these type of services auditing compliance. New religions expect disconcerting uncertainty services with these type of services to their clients by avoiding the professional off while holding that standards off professionalism, integrity, objectivity and independence. Okay, so the question is asked us that which of the following types off entities provide these type of services Auditing of lions, due diligence, tax matters consumptions. Okay, so the correct choices public accounting firms. Okay, you need to jotted Jordan the definition down in your book so that you can get out clear sense off the meaning off public about it forms on this one bores. Okay, So the correct choice, the problem is the okay. Public around forms, OK, because public accounting firms are only eligible to provide these services. All reading complies totally. His tax make defensive intensity on the list is really, really nor exhaustive. There are a number of services which can be provided by IT firms. However, Mr Management Investment constructing risk management have some services. Largely So I devised these farms. Okay, so that&#x27;s all of a solution. Okay. Thank you.

Problem 10 Medium Difficulty

Which of the following is likely not a type of not-for-profit entity?
A. public library
B. community foundation
C. university
D. local movie theater

Answer

Related Courses

Principles of Accounting Volume 1: Financial Accounting

Related Topics

Discussion

Top Educators

Recommended Videos

Watch More Solved Questions in Chapter 1

Video Transcript

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting

Additional Mathematics Questions

What do you need help with?

Textbooks

Ask a question

Courses

AI Tutor

Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting