Chapter One Essay

1997 words - 8 pages

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CHAPTER ONE: Characteristics and Types of G&NP Organizations FAC 402
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1) -------------------------------------------------
G & NP organizations exist because a community or society decides to provide certain goods or services to its group as a whole. Explain the general and major characteristics that differentiate G&NP organizations from profit-seeking entities?
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Suggested Solution
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Generally governments ...view middle of the document...

e. -------------------------------------------------
Both can operate similar goods and services, however the fees charged and the level of service offered will differ.
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Characteristics of G&NP organizations: (the doctor said not to study this part but I believe it can help you in understanding the objectives)
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government and nonprofit (G&NP) organizations are service-oriented and operate without profit motives
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they usually are "owned" collectively, and ownership interests cannot be sold or traded;
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contributors of financial resources to G&NP organizations do not necessarily receive any direct or proportionate shares of their goods or services; for example: all citizens must pay taxes to the government to finance governmental schools even if they do not have children in these schools
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they often provide goods or services that are not feasibly provided through the private sector;
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Their major policy decisions are typically made by consensus vote of an elected or appointed governing body
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The decisions are taken in meetings open to the public
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The major differences include: organizational objectives – sources of financial resources – methods of evaluating performance and operating results.
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a. -------------------------------------------------
Organizational objectives:
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Profit seeking entities:
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seek to increase their wealth for the benefit of their owners who expect income or gain when providing resources to profit-seeking enterprises.
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G&NP organizations:
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Increase the amount of available resources to enable the governments to provide better services and not to increase their wealth
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aim to provide as much services each year as their financial and other resources would permit them.
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Operating in a year to year basis obligates them to raise as many financial resources as they can and expand them in serving their goals and obligations.
b. -------------------------------------------------
Evaluating performance and operating...

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