A nonprofit organization does not issue stock shares or distribute its extra funds to owners or shareholders. If all businesses were required to operate as nonprofit organizations, how might that hurt a free market economy? People would be less likely to buy goods and services in they thought a company could not issue stock. Business owners would be less likely to invest in their businesses if they could not personally profit from them. People would be less likely to buy goods and services if they thought that the owners or shareholders could not profit. Nonprofit organizations

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Iyana Fischer

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29 March, 20:30

A nonprofit organization does not issue stock shares or distribute its extra funds to owners or shareholders. If all businesses were required to operate as nonprofit organizations, how might that hurt a free market economy? People would be less likely to buy goods and services in they thought a company could not issue stock. Business owners would be less likely to invest in their businesses if they could not personally profit from them. People would be less likely to buy goods and services if they thought that the owners or shareholders could not profit. Nonprofit organizations

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Madilynn Buchanan · Answer 1

"Business owners would be less likely to invest in their businesses if they could not personally profit from them" is the best option from the list, since if profit incentives are taken away there is really no financial reason for someone to invest in a firm.