1- Nonprofit organizations differ from for-profit businesses in that(1 point)

• nonprofit organizations do not earn a profit.
• nonprofit organizations distribute profit to shareholders via dividends.
• nonprofit organizations are not businesses.
• nonprofit organizations retain profit rather than distribute it to shareholders.

2- Local craftsmenform a voluntaryassociation, pooling resources and engaging in other cooperative behaviors to increase sales oftheir products.This scenario is an example of a(1 point)

• service cooperative.
• producer cooperative.
• franchise.
• consumer cooperative.

3- Which of the following could be classified as a franchise?(1 point)

• a national fast-food chain owned and operated by a single organization
• one of many daycare centers owned and operated by a single family
• one of several unrelated laser tag companies in a region that are owned and operated by individuals

one of several hair salons owned and operated by individuals but licensed and supported by a single entity

4- A car washing company has developed a successful business model with effective pricing and marketing. To leverage this success, the company plans to sell licenses to potential business owners, giving them permission to use the name, product, and prices of the car washing company at different locations. In this scenario, the car washing company is(1 point)

• a franchisor.
• a franchisee.
• a producer cooperative.
• a consumer cooperative.

5- A nonprofit organization with 501(c)(3) designation differs from other nonprofits in that the 501(c)(3) nonprofit organization(1 point)

• does not earn any profit.
• is governed by a board of directors.
• enjoys local, state, and federal tax exemptions.
• operates in accordance with its stated mission.