Commercial Applications
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
Commercial Orgs Intro
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Answer
Only II is correct
Reason — Statement I is wrong because non-profit organisations providing free educational services do not generate income by selling goods — they raise funds through donations, government grants, membership fees, and nominal service charges. Statement II is correct — non-profit organisations are formed for social service, public welfare, and promotion of art, culture, religion or charity, not for earning profits.
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