Asked by Michael Hawthorne on May 14, 2024

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A business that is created to make a profit for its owners and stockholders:

A) would deemphasize the service it provides.
B) should select projects that entail limited cost.
C) competes for funding from higher levels of government.
D) emphasizes its responsibilities to the citizens it represents.
E) must consider the cost of each project and how much profit it is likely to generate.

Profit

The financial gain obtained when revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain the activity.

Stockholders

Individuals or entities that own shares in a corporation, giving them certain rights regarding the company's management and profits.

Owners

Individuals or entities that possess legal rights and responsibilities over a project, business, or asset.

  • Recognize the distinctive purposes and operational contrasts between for-profit and not-for-profit organizations.
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NC
Nancy CampanaMay 17, 2024
Final Answer :
E
Explanation :
A business that is created to make a profit for its owners and stockholders must consider the cost of each project and how much profit it is likely to generate. This implies that the business should select projects that have a higher potential for generating profits while keeping the costs under control. Therefore, Choice E is the best option.