In our classroom lessons, in our textbooks, and in the article titled Why Governmental Accounting and Financial Reporting Are and Should Be Different than Governmental Accounting Standards Board, we Students were provided with five environmental differences between governments and for-profit businesses. The five environmental differences are as follows: organizational purposes, sources of revenue, longevity potential, relationship with stakeholders, and the role of the budget. First, organizational purpose is described as an organizational purpose of government aimed at providing public services for the well-being of citizens regardless of profit. Some of these public services are education, public safety, transportation, and social services. Whereas the organizational purpose of a for-profit business is to generate a profit for the owner by providing services to the public. Second, revenue sources state that a for-profit business's source of income is net income, which is total revenue (sales) minus total expenses. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay On the other hand, a government's source of revenue comes mainly from taxes. Third, it has potential for longevity. The article explains that state and local governments are unlikely to fail because they have the ability to tax and 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 the interested parties. It is stated that since governments' main source of revenue is taxes, which are mostly paid by citizens, they are held accountable for these public funds, while on the other hand a company can use its resources as prefer. Finally, there is the role of budget. The article explains that companies prepare a budget for planning and control purposes and do not normally provide it to creditors or investors: while governments, on the other hand, prepare a budget that expresses itself as a public policy, which prevents spending outside of their budgetary authority. Additionally, there are a couple of differences between private sector and public sector organizations. For example, the public and private sectors have different goals and motivations. They are supervised with different principles. The groups supervise their actions and procedures throughout the process. One example is how private sector organizations have more freedom to operate freely. As for public organizations, they are not so free. They are governed by rules, laws and traditions. One significant difference between the two is their goals. For example, the main objective of the public sector is to assist the general public and look after their interests. As for the private sector, their main concern is to create markets to enable them to make profits. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay The private sector is accountable to stakeholders, customers, investors, board of directors, and directors. The difference in their goals and external forces influences how different types of organizations operate. For example, public organizations often cannot choose their own goals. As for the private sector, they set their own goals and focus on their own resources to achieve them. The organizations.