Commercial Applications
A hospital that provides free services to the needy but charges nominal fees from others is classified as a non-profit organisation.
- True
- False
Answer
True
Reason — A hospital that provides free services to the needy and charges only nominal fees from others is a non-profit (charitable) organisation. As the textbook notes, non-profit organisations "may charge nominal or reasonable prices for their services in order to raise funds" while still pursuing their main motive of service rather than profit.
Related Questions
Which of the following correctly represents the interdependence of industry, commerce, and trade?
- Commerce is independent of industry, while trade depends on industry.
- Industry creates goods, commerce distributes them, and trade facilitates their exchange.
- Trade relies on commerce, but industry operates independently.
- Industry creates form utility, while trade creates time utility and commerce creates possession utility.
Statement I: A non-profit organisation providing free educational services generates income by selling goods.
Statement II: Non-profit organisations focus on serving society rather than earning profits.
- Both I and II are correct
- Both I and II are wrong
- Only I is correct
- Only II is correct
A farmer grows organic vegetables and supplies them to local markets. To increase profits, the farmer sets up a cold storage unit to store surplus vegetables during the off-season and sells them when prices are higher. Which type of industry does the farmer's activity represent?
- Extractive Industry
- Genetic Industry
- Manufacturing Industry
- Construction Industry
Give two characteristics of business.