Which of the following is a disadvantage faced by charities?

Prepare for the SQA Higher Business Management Exam. Enhance your skills with dynamic flashcards and practice questions. Explore hints and explanations to ace your exam!

The correct answer highlights a significant challenge faced by charities, which often struggle to compete with organizations that have substantial marketing budgets. Charities typically operate on tighter budgets, meaning they may not have the resources to invest in extensive marketing campaigns that can help raise awareness, attract donations, and promote their causes. This limitation can hinder their ability to reach potential donors or beneficiaries compared to larger organizations that can effectively utilize a wide array of promotional channels.

In contrast, the other options present characteristics or situations that do not reflect inherent disadvantages of charities. Selling products at high prices may not accurately represent a core disadvantage, as many charities sell goods below market value for accessibility. Access to greater government funding is an advantage that some charities can leverage, enabling them to support their initiatives effectively. Finally, direct ownership by trustees is a governance structure typical of charities, ensuring accountability and oversight, rather than posing a significant disadvantage.

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