Commercial Applications
Answer
| S.No. | Basis of Distinction | Profit Making Organisation | Non-Profit Making Organisation |
|---|---|---|---|
| 1. | Primary motive | To earn profit. | To render service. |
| 2. | Main function | Production and distribution of goods and services. | Providing services to members and the public. |
| 3. | Risk | High. | Low. |
| 4. | Government control | High. | Low. |
| 5. | Government grant | Not available. | Available. |
| 6. | Net result of operations | Profit or loss. | Surplus or deficit. |
| 7. | Payment of tax | Liable to pay tax. | Not liable to pay tax. |
| 8. | Accounting system | (a) Manufacturing A/c (b) Trading A/c (c) Profit & Loss A/c (d) Balance sheet | (a) Receipts and Payments A/c (b) Income and Expenditure A/c (c) Balance sheet |
| 9. | Examples | Reliance Industries, Bajaj Auto, Dabur, Raymonds. | Akshaya Patra, SEWA, Ramakrishna Mission, Missionaries of Charity, CRY, Helpage. |