"A not-for-profit organization must in fact make a profit to survive. A profit simply means that revenues cover costs. If a not-for-profit organization consistently operates at a loss, it must eventually go out of existence just as a for-profit organization will." According to the reading selection, this passage is:
essentially correct. incorrect because the law requires not-for-profit organizations to run at a loss. incorrect because not-for-profit organizations do not face a supply-curve-of-resources constraint. incorrect because not-for-profit organizations do not have principal-agent problems.
The goal of survival is most likely to lead to profit maximization when the:
firm is a not-for-profit organization. firm is a monopoly. industry has easy entry and exit. firm can evade government regulations