A nonprofit organization depends on earned income as its only revenue source. According to Worth, this action is an example of a/an ______.

A) liability
B) business risk
C) spending limit
D) equity concept

Earned Income

Income generated from the sale of goods or services by an organization, as distinct from donations or grants.

Liability

A legal responsibility or obligation, often in financial terms, that a person or entity has to another.

Business Risk

The exposure to factors that may cause a business to experience lower profits or financial loss, including market competition, regulatory changes, and operational failures.