Differences between a nonprofit and for-profit organization.

Write a 1,050- to 1,400-word paper describing the main differences between a nonprofit and for-profit organization. Include the following:
The costs associated with any organization, and which costs are unique to nonprofit organizations
The importance of budgeting and planning in a nonprofit setting
The cash flow management strategies of nonprofit organizations and how they differ from for-profit organizations

Sample Answer

Whereas non profit organization, also known non-governmental organizations is an organization dedicated to the advancement of a certain social or economic cause or shared point of view with no profit being expected in return, for profit organization are chiefly concerned with making money and nothing else and putting their fiduciary interest first above anything else.



The Kingdom of Saudi Arabia is a nation favored with huge raw petroleum saves far and wide. Be that as it may, just relying upon the oil business will lead Saudi Arabia to an unpredicted future. Along these lines, the Saudi government is improving the capacity for drawing in more FDI in Saudi Arabia by a progression of approaches. In light of this foundation, this postulation considers the job of remote direct interest in Saudi economy by presenting Saudi economy in the few viewpoints: oil industry, non-oil divisions, private parts, outside exchange and current circumstance of FDI in Saudi Arabia. An experimental investigation is given to test the causal connection between FDI inflows and the financial development utilizing Granger causality test. In the interim, a straightforward relapse is additionally given to break down the job of FDI inflows contrasted and the other two factors: oil costs and remote exchange transparency. I expand this exploration by examining the job of FDI inflows to Saudi economy from both the long haul and the present moment. The long haul time frame is from 1970 to 2010 while the momentary period is from 2006 to 2012. It is discovered that, from the long haul, there exists a positive connection between FDI inflows and the financial development, and from the present moment, FDI inflows negatively affect Saudi economy. This is because of the explanation of the impacts from the worldwide market, for example, the monetary emergencies. This proposition likewise gives some down to earth proposals to the current monetary exhibition of Saudi Arabia.

Catchphrases: FDI inflows, oil costs, outside exchange transparency, GDP development, oil part, non-oil segment, private area

Arrangements of Abbreviations

' FDI: Foreign Direct Investment

' GDP: Gross Domestic Product

' ARAMCO: Arabian-American Oil Company

' OPEC: Organization of Petroleum Exporting Countries

' KSA: Kingdom of Saudi Arabia

' UAE: United Arab Emirates

' OECD: Organization for Economic Co-activity Development

' PIF: Public Investment Fund

' SIDF: Saudi Industrial Development Fund

' KACST: King Abdul Aziz City for Science and Technology

' OIL: Oil Prices

' OPEN: Foreign Trade Openness

' MENA: Middle East and North Africa

Section 1 Introduction

1.1 Research Background

The Kingdom of Saudi Arabia is the nation with the biggest oil saves the world over. Be that as it may, basically relying upon the oil business won't lead the nation to economical improvement and a brilliant future. Since 1960s, the legislature of Saudi Arabia began to pull in FDI and raise the commitment of the private segment so as to make another method for invigorating its economy. These days, the Saudi Arabian government has broadly acknowledged that the economy ought rely upon the oil business as well as on the capacity to draw in FDI in an expanding level. In this way, my exploration on the job of FDI in Saudi Arabian economy is huge as far as hypothesis and practice.

1.2 Aims and Objectives of the Research

Remote Direct Investment, or FDI, has been portrayed as a procedure where a speculator from a specific nation gets the responsibility for in another nation so as to make benefits or procure rare beneficial assets. During this procedure, the money related assets, advances and other human capitals will be moved from the nation of origin to the host nation. In this way, FDI is extremely basic for the creating nations and the recently industrializing nations as far as the economy development, for example, Saudi Arabia.

Various papers have considered the connection among FDI and the full scale economy in various nations, and Saudi Arabia is a decent case to clarify how FDI impacts the economy development. My exploration considers the idea of FDI in Saudi Arabia by talking about the dispersion of FDI, giving nitty gritty data about the various divisions deprived for FDI, and furthermore, directing an exact examination that tests the effect FDI has on the Saudi Arabian economy. The points and targets of my exploration is to examine the connection among FDI and economy development in Saudi Arabia and to what broaden the FDI can impact on the Saudi Arabian economy.

1.3 Thesis Outline

This exploration is partitioned into 6 sections. Part 1 quickly presents this proposal from its experience, points and goals, and the blueprint. Part is the writing survey, presenting the previous examinations on the connection among FDI and the financial development. Part 3 is a presentation about the Saudi economy regarding its oil industry, non-oil and private divisions, remote exchange and current states of FDI. Part 4 is the technique structure of this exploration while section 5 is the exact examination utilizing Granger causality test and a straightforward relapse. Section 6 is the ends and suggestions of this theory.

Chapter2 Literature Review

2.1 Overview

Since the most recent two decades, FDI has become the best and significant factor in the economy development, particularly for the creating nations. Pretty much every rising economy attempts to make an invigorating and urging strategy condition to pull in however much FDI as could be expected to their nations. Without a doubt, FDI prompts a success win circumstance where both the host and the nation of origin could profit by it. The nation of origin profits by extending its business sectors while the host nation exploits the mechanical overflows and administrative aptitudes. Moreover, the worldwide market combination facilitates the path for this phenomenal development of FDI around the globe.

2.2 Literature Review

The hypothesis of FDI was begun from 1960s. Specialists set forward a progression of speculation concerning the inspirations and the impacts of FDI. All in all, these speculations can be isolated into two sections: one is the exchange of the causes and inspirations of FDI; the other one is the examination on the impacts of FDI in the host nations. Financial experts accept that FDI assumes a significant job in the monetary improvement, particularly in the creating nations.

The principle inquire about on the causes and the inspirations of FDI were created by J. Dunning, S. Hymer and R. Vernon. Heckscher-Ohlin (1960) attempted to clarify FDI in the Neoclassical Trade Theory. In his model, he recommended the instance of two distinct nations with two unique wares which require two distinct components of generation. For instance, nation An is plentiful of capital while nation B is plenteous of work, at that point nation A should create the capital escalated items. And furthermore, nation A will move its generation to nation B because of the modest work, which can be taken as the FDI action from nation A to nation B.

Vernon (1966) expressed that there are three phases of generation in his item life circle model, which clarified FDI in the creating nations from another point. In the first place, the creation of a specific items begins with all the accessible factors, for example, innovation and capable works in the created nations. In the subsequent stage, the generation needn't bother with any further improvement and is going to be moved from the created nations to the creating nations as a piece of outside venture. At that point the third stages begins where the creation moves to the creating nation because of its modest work and expenses.

Dunning (1974) broke down the components in basic leadership of FDI and expressed that various elements must be placed into thought before settling on choices, for example, singular qualities, connections between the two countries and structure of the association. He likewise closed the three variables of FDI: Ownership, Location, Internalization, or OLI model. These three components result to the causes and states of a financial specialist's FDI. Proprietorship and Internalization are the capacities of an organization regarding direct speculation. And furthermore, they are the purposes behind the likelihood that the organizations could take in and impersonate innovation from the organization of home nations. Area decides the capacity of host nations drawing in FDI. In this manner, geological conditions and frameworks are the significant variables of host nations as far as drawing in FDI.

These are some early examines in regards to the FDI. Other new investigations have been done lately. These looks into shed light on the job of FDI in the economy of host nations. Financial experts have concurred that FDI should be treated as an enhancement to residential capital and is a decent method for gaining new innovation, in this way improve the proficiency of the generation.

Caverns (1996) stated that the purpose behind an expanding number of the nations which are appealing to FDI is that they are attempting their best to boost their yield. The innovation move will be useful to these nations during the FDI procedure. The work force improvement and the entrance to the global markets have additionally been one of the significant advantages that creating nations, similar to Saudi Arabia, have been quick to get. In this manner, these nations which benefits most from the FDI will be on the highest point of the worldwide economy.

Besides, Bornstein (1998) expressed that FDI is a fundamental device for the augmentation of development of any nation that longing to assume a significant job on the planet economy. De Gregorio (2003) saw that any nation which has an elevated level of capacity to draw in FDI is very much acted regarding its own monetary development in light of the improvement of innovation and the information originating from the FDI. The FDI has likewise end up being more proficient than the nearby local speculations which don't have better frameworks and innovation to deal with the creation procedure effectively and have the expenses of the items at the least. Bornstein, et al. (1998) noticed that FDI directly affects the monetary divisions of the host nation, especially local people's private segments. Blomstrom (1994) found that there is a positive connection among's FDI and financial development in Indonesia and Mexico. Other than Blomstrom (1994), Mellow (1997) and Marcusse (1999) additionally discovered positive connection among's FDI and the e