Question

What term describes institutions such as governments, social cause organizations, and religious groups that cannot retain earnings over expenses, do not have equity interests, and cannot be bought or sold?

Answer 1

Non-profit organizations are institutions such as governments, social cause organizations, and religious groups that cannot retain earnings over expenses, do not have equity interests, and cannot be bought or sold.

Step-by-step explanation:

The term that describes institutions such as governments, social cause organizations, and religious groups that cannot retain earnings over expenses, do not have equity interests, and cannot be bought or sold is non-profit organizations.

Non-profit organizations include welfare groups, churches, hospitals, schools, museums, civic organizations, fraternal organizations, veterans organizations, and social clubs. These organizations are legally incorporated and have a corporate structure, but they operate with the goal of providing goods and services to their members or participants to improve their lives or achieve a specific outcome, such as education or health.

Unlike for-profit businesses, non-profit organizations do not aim to make a profit. If they generate surplus funds, those funds are reinvested or used to expand their services. Non-profits are an essential part of society as they fulfill societal needs and contribute to various aspects of people's lives.