What Is The Difference Between A For Profit And Nonprofit

 Now that we have a working definition for a “nonprofit” let’s compare it to a “for-profit” business. A “for profit” business is generally created to sell a good or service with the goal of making a “profit” for the owners or shareholders of the business. When you think of a for-profit company, think of most of the goods and services that you use every day. Behind those products and services are companies that are constantly innovating with the purpose of reducing their costs, offering more products and raising their prices all with the goal of making more profit for their owners and shareholders. For-profit businesses are owned by individuals. This means that if there is money left over at the end of the year, this money is paid out to the individuals that own the business and can be deposited into their personal bank accounts. If they ever decide to close the business, they can sell everything the business owns and then keep the proceeds for themselves 

Also Read : What Are The Roles and Responsibilities of Board Members in a Non-Profit Organization