Knowledge · Finance
Finance
Our motive is far from stepping on those who are already down. Our trusted market leaders provide insight to eliminate fear and avoid wasteful spending.
The fundamentals
Business Types
Understanding how an organization is structured tells you how it behaves — who it answers to, where its money goes, and what that means for the people inside it.
For-Profit
- Owned by corporations, shareholders, or private investors.
- Focused on generating profit and making business decisions for the betterment and profitability of investors and owners.
- Pays taxes on both property and income generated.
- Typically offers less charity, as the focus is generating revenue and profit for investors.
- More aggressive billing practices.
- More likely to exhibit cost-cutting behaviors.
- Focuses on high-return services — for example, elective surgeries.
- Comes in a variety of classifications, such as Limited Liability Companies (LLC) and corporations (C-Corp, S-Corp, P-Corp).
Nonprofit
- Aims to serve the general community and improve public health by providing care to all individuals, regardless of socioeconomic status or ability to pay.
- Exempt from federal and state income taxes.
- Must provide benefit to the community, such as free or discounted care for low-income individuals.
- All profits must be reinvested in the organization — improving equipment, staffing, and community programs.
- Funded by the community, government grants, and donations.
Want the bigger picture? Continue to the Financial Hub for pay transparency tools, or explore Healthcare and Legal knowledge.