Question

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 if 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 cannot provide goods and services.

Answer 1

Am I right with B?

Answer 2

Yes, you are correct.

As the question says, "A nonprofit organization does not issue stock shares or distribute its extra funds to owners or shareholders."

You can easily eliminate C and D.

C = Its incorrect because people would buy items based on how much it costs.

D = Its eliminated because they can provide but " Business owners would be less likely to invest in their businesses if they could not personally profit from them."

And based on that, answer choice A is also eliminated

Answer 3

Thanks again.

Answer 4

You're Welcome, glad to help