alleryStart learning →Not-for-profit organisations are also known as:
ANon-trading concerns or non-profit organisations
BSole proprietary concerns or trading firms
CPartnership firms or joint stock companies
DManufacturing concerns or trading concerns
Answer & Solution
Correct answer: A. Non-trading concerns or non-profit organisations
1. Some organisations exist to render services to the public without any profit motive.
2. They may be created for the promotion of art, culture, education or sports.
3. The textbook calls these not-for-profit organisations, and adds that they are also called non-profit organisations or non-trading concerns.
4. Charitable institutions, educational institutions, cultural societies, sports clubs, hospitals and libraries are the examples it gives.
_Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 2 "Accounts of Not-for-Profit Organisation", §2.1_
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