1.

Give TWO Distinctions between a “Not-for-Profit Organization and a “Trading Organization.

Answer»

Difference Between Not-for-Profit Organization and Trading Organization

S. No.BasisNot for Profit OrganizationTrading Organization
1.PurposeThe main purpose of these type of organizations is to provide Services to a Specific Group or Public in generalThe main purpose of these type of organizations is to earn more and more profits .
2.ProprietorshipSubscribers to the organization are members of the organizationIndividual or Group of Individuals who have taken risk of carrying the business are the Partners.
3.Profit /SurplusProfit in case of Not-for Profit organization is called Surplus .The amount earned after charging All Expenses and Losses is called Profit



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