New A Level
Economics
Behavioural
Economics
Resources for Courses
For Profit vs Not For Profit Organisations
Resources for Courses
Teacher Instructions
Many businesses/firms that exist do so with the objective of maximising profits. As
societal and government pressure increases, more and more businesses have moved
away from profit maximisation and will attempt to combine objectives, including
promoting some sort of cause or welfare improvement.
As such, it is difficult to tell the difference between an organisation that exist to make
a profit (but may promote a cause such as an improvement in the environment) and
those that exist to genuinely promote a cause (such as a charity).
The distinction between a ‘For Profit’ and a ‘Not For Profit’ organisation can be further
blurred by the fact that some ‘Not For Profit’ organisations may actually make a
profit! However, they will use this profit to plough back into whatever societal cause
they represent (as opposed to distributing the profit among its owners, such as
shareholders).
Your Task
You have been given a template that shows a Venn diagram. You have also been given
a set of cards.
Your task is to place the cards on the template showing the aspects of a purely ‘For
Profit’ organisation, the aspects that apply only to ‘Nor For Profit’ organisations and
those that could apply to both.
Within the cards you will also find some titles of possible organisations. Again, you
should decide which, on the balance, are likely to be ‘For Profit’, ‘Not For Profit’ or
could genuinely be either.
For Profit vs Not For Profit Organisations
For Profit vs Not For Profit Organisations
For Profit vs Not For Profit Organisations
When liquidated,
assets can be shared
among owners
When liquidated, any
assets must go to a notfor-profit organisation
Can make a profit
For Profit vs Not For Profit Organisations
For Profit vs Not For Profit Organisations
For Profit vs Not For Profit Organisations
Must pay taxes on
their net income
No-one actually
own shares in the
organisation
Not profit-maximising
For Profit vs Not For Profit Organisations
For Profit vs Not For Profit Organisations
For Profit vs Not For Profit Organisations
Often staffed by
salaried and hourly
paid workers
Often staffed by a
group of volunteers
Control of organisation
is by a board of
directors
For Profit vs Not For Profit Organisations
For Profit vs Not For Profit Organisations
For Profit vs Not For Profit Organisations
Must publish a
balance sheet
Receive charitable
donations
Seeking to give
something back to
society
For Profit vs Not For Profit Organisations
For Profit vs Not For Profit Organisations
For Profit vs Not For Profit Organisations
Can be a Limited
or Public Limited
Company
Zoo
Seeks to benefit
its employees
For Profit vs Not For Profit Organisations
For Profit vs Not For Profit Organisations
For Profit vs Not For Profit Organisations
Market Stall selling
vegetables
Housing Association
Glass Re-cycling
company
For Profit vs Not For Profit Organisations
For Profit vs Not For Profit Organisations
For Profit vs Not For Profit Organisations
Professional
Football Team
School
Stately Home
Visitor Attraction
For Profit vs Not For Profit Organisations
For Profit vs Not For Profit Organisations
For Profit vs Not For Profit Organisations
Farm
Hospital
Charity Shop
Professional Football Team
Market Stall selling vegetables
Can be a Limited or Public Limited Company
Must publish a balance sheet
Often staffed by salaried and hourly paid
workers
Must pay taxes on their net income
Profit
When liquidated, assets can be shared among
owners
Hospital
School
Housing Association
Zoo
Receive charitable donations
Often staffed by a group of volunteers
No-one actually own shares in the organisation
Not for profit
When goes out of business, any assets must
go to a not-for-profit organisation
Stately Home Visitor Attraction
Glass Re-cycling company
Seeks to benefit its employees
Seeking to give something back to society
Control of organisation is by a board of
directors
Not profit-maximising
Both
Can make a profit
Possible Answers
Farm
Charity Shop