Throughout our courses, textbook, and article titled Why Government Accounting and Financial Reporting Are Different and Should Be Governmental Accounting Standards Board, we students were given five environmental differences between governments and for-profit businesses. The five environmental differences are: organizational goals, revenue sources, longevity potential, stakeholder relationships, and the role of the budget. First, organizational objective is described as an organizational objective of the government to provide public services for the welfare of citizens, regardless of profit. Some of these public services are education, public safety, transportation and social services. While the organizational objective of a for-profit business is to generate a profit for the owner while providing services to the public. Second, revenue sources indicate that the for-profit business's source of revenue is its net income, which is total revenue (sales) minus total expenses. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay On the other hand, the source of revenue of a government is mainly from taxes. Third, there is the potential for longevity. The article explains that state and local governments rarely go bankrupt because they have the ability to tax and that for this reason, governments view accounting operations on a long-term rather than short-term basis. Meanwhile, governments are focused on maintaining services and how they will meet their future demands. Then there is the relationship with stakeholders. This is the fact that since the government's main source of revenue is taxes, which are usually paid by citizens, they are required to account for these public funds, while on the other hand , a company can use its resources as it sees fit. Finally, there is the role of the budget. The article explains that companies prepare a budget for planning and control purposes and do not normally communicate it to creditors or investors: while governments, on the other hand, prepare a budget that is expressed as public policy, which prevents spending outside of their budgetary authority. Additionally, there are some differences between private sector and public sector organizations. For example, the public and private sectors have different goals and motivations. They are framed according to different principles. The groups supervise their actions and procedures throughout. One example is how private sector organizations have more freedom to operate freely. As for public bodies, they are less free. They are governed by rules, laws and traditions. A significant difference between the two lies in their objectives. For example, the main objective of the public sector is to help the general public and look after their interests. As for the private sector, its main concern is to create markets in order to make profits. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get a Custom Essay The private sector must respond to stakeholders and customers, investors, the board of directors and directors. The difference between their goals and external forces affect how different types..