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What do not-for-profit organizations focus on instead of profit for owners?
ARaising the price they charge to cover shareholder gains
BRaising enough funds to cover expenses or expand services
CRaising the market share they hold against rival charities
DRaising the number of paid staff they are able to employ
Answer & Solution
Correct answer: B. Raising enough funds to cover expenses or expand services
1. Not-for-profit organizations still analyse their environment and build a marketing mix.
2. What they do not do is seek a profit for redistribution to owners or shareholders.
3. Their focus is on raising enough funds to cover expenses or to expand services.
4. Where funds exceed expenses, the surplus goes into wider or better services.
5. Shareholder gains, market share against rivals and headcount are not the stated focus.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 11 "Creating Products and Pricing Strategies to Meet Customers' Needs", section 11.3 Developing a Marketing Mix_
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