Question

Do you really believe that entities plan to operate without a profit (besides the federal government)?   
Do you believe that they should plan for no profit? Why or why not?

Answer 1

I think that entities should operate on profit basis. Because Entities which are formed without the government support need to rely on money on them .So if the business doesn’t earn any profit, no one will give capital or lend support. Entities which are formed with the government are tending to serve the backward areas and society. These entities are main motives is to provide service in very low cost or no cost. They are supported by Government agency. So they don’t have to think of any money related matter. Whereas Private entities fully run on private money .They also contributed to the society but their main aim is to earn profit and contributed to nation growth. Entities with profit motives will get investment from private investors, give dividends to shareholders, return on investment .Whereas nonprofit entities rely on government support, individual contributions, donations or charity from any corporation.
I believed that entity should decide whether they should plan for profit or no Profit .It should mention when an entity started. But I don’t think an entity should plan for no profit, in long run you faced financial difficulties sometimes charity stopped, government support due to budget deficit. An entity should stand on its own feet and earn profit, by that profit it can contributed to national growth, raise people standard of living, contributed government treasury. Profit can be distributed to society in form of CSR (Corporate Social Responsibility) where entity can construct toilets, schools, hospitals. So entity should concentrate on profit but profit should be in ethical ways not by ways of charging heft money from customers. Apart from that Federal government is there to support society in time of needs.