Explain viewing the nonprofit organization as an economic entity and, as such, subject to economic factors Solution The objective of non profit organization is to serve the society with respect to social services, health care, education, employment and culture with no profit motive. The NPO’s are majorly expected to work for poor people with the intention of upliftment of a nation. But if we look at closely, the NPOs are formed to produce a good or service with scarce resources. The NPOs as a firm needs to establish some level of efficiency in managing the resources committed to maximize social benefits and it needs to raise its own resources, manage them effectively, and add value to a service which justifies the investment, efforts and support from government in terms of tax exemption..