Which term describes an organization with the primary goal of earning profits for owners?

• A. for-profit
• B. nonprofit
• C. government
• D. cooperative

Answer: (A)

Profit motive is the key idea. An organization whose primary aim is to earn profits for owners or shareholders is described as for-profit. These entities reward owners with earnings through dividends or share value growth and may reinvest profits for growth or distribution.

This contrasts with nonprofits, which focus on a mission and reinvest any surplus back into programs rather than distributing profits to private owners. Government entities operate to provide public services funded by taxes, not to earn profits for owners. Cooperatives are owned by their members, and profits go to member benefits or patronage refunds rather than to external owners.