For-profit businesses and nonprofit organizations are similar in that they both:

• A. are exempt from all forms of taxation
• B. seek to achieve specific organizational goals
• C. operate solely to maximize shareholder wealth
• D. distribute profits to owners or shareholders

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the nature of for-profit businesses and nonprofit organizations. For-profit businesses aim to maximize profits and distribute them to owners or shareholders, while nonprofit organizations aim to achieve specific goals without distributing profits.
2. Step 2: Analyze the options given: (a) 'are exempt from all forms of taxation' is generally false because for-profit businesses pay taxes, while nonprofits may have tax exemptions; (b) 'seek to achieve specific organizational goals' applies to both, as both have objectives they aim to fulfill; (c) 'operate solely to maximize shareholder wealth' applies only to for-profits; (d) 'distribute profits to owners or shareholders' applies only to for-profits.
3. Step 3: Recognize that the key similarity is that both types of organizations have specific goals they seek to achieve, even though their goals differ in nature (profit vs. mission-driven).
4. Step 4: Conclude that the correct similarity is that both 'seek to achieve specific organizational goals.'
5. Step 5: Remember that tax exemption and profit distribution are distinguishing features, not similarities, between these two types of organizations.