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
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.
Related Questions
Identify the type of industry shown in the given image.
- Genetic Industry
- Extractive Industry
- Analytical Industry
- Synthetical Industry
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.
A hospital that provides free services to the needy but charges nominal fees from others is classified as a non-profit organisation.
- True
- False
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