Question

Select the items that describe ways that small firms corporations or not for profit organizations can receive capital or money sources. Select all that apply.

1 loans
2 private donations
3 grants
4 issue bonds
5 issuing stocks

Answer 1

Private Donations and Grants

Step-by-step explanation:

Answer 2

The correct answers are: "2: private donations" and "3: grants"

Not for profit organizations or entities who operate at local, regional, national, and international levels who serve a particular social or political purpose. In order to fund themselves they rely on the following sources:

• Private donations: From businessmen who follow the ideals of the organization or philanthropists.
• Government Grants: These funds are normally managed and assigned by a specific office in the government in charge of channeling resources to certain organizations.

Loans and the issuing of bonds and stocks generate financial obligations to the entity. This does not go according to the operating model of a Not for Profit Organization because it follows a specific goal rather than the conventional business model of generating gains.