The primary goal of not-for-profit corporations is expressed in a mission statement and often involves service to the community.

• A. True
• B. False
• C. Profit maximization
• D. Market share

Answer: (A)

Not-for-profit organizations focus on a mission that emphasizes serving the community. Their primary objective isn’t to generate profits for owners, but to fulfill that mission; any surplus is reinvested to support programs and sustain services. The mission statement captures this purpose and guides what they do, how they allocate resources, and how they measure success. Because of that, the statement is true.

Profit maximization reflects goals of for-profit entities aiming to increase earnings for owners, not for a nonprofit. Market share is a competitive metric tied to for-profit strategies and growth in a marketplace, not the nonprofit’s central aim.