Question

5. Which of the following is not 1b
a Not-for Profit organization?
a) College
b) Sports club
c) Maruti udyog Limited.
d)Hospital​

Answer 1

Answer:

c) Maruti udyog Limited.

Explanation:

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Answer 2

Answer:

The correct option is (c) Maruti Udyog Limited

Explanation:

Non- Profit Organization-

• Non-profit organizations are formed for the purpose of social welfare or charity.
• They usually promote science, art, charity, commerce, or religion for the sake of social development rather than for personal gain. Section 8 of the Indian Companies Act, 2003 allows such establishments to be registered.
• It is a type of organisation that does not generate profits for its owners; instead, all donations are used to pursue the organization's goals and keep it running.

Features of a Non- Profit Organization-

• Service Motivation - Non-profit organisations are those that exist primarily to serve a specific group of people or the general public without regard to caste, creed, or gender. They provide assistance for free or at a low cost because profit is not their motivation. They provide services such as health care, education, food, recreation, shelter, clothing, sports facilities, and so on.
• Management - These organisations are typically managed by a managing committee or executive committee, which is elected by their members.
• Members - Because these organisations are formed as charitable societies or trusts, the people who donate to them are members.
• Donations, subscriptions, government grants, income from investments, legacies, and other sources of income are the primary sources of income for these trusts.
• Surplus - Any surplus generated during the fiscal year will be credited to the capital fund.
• Reputation - These organisations are known for the contributions they make through their services, not for the personal goodwill of their members.
• Accounting Information - Accounting information is generally available to any current or potential contributor and its members.

Since, Maruti Udyog Limited doesn't provide services like  health care, education, food, recreation, shelter, clothing, sports facilities, and so on, it is managed by its shareholders, its primary source of income is not donation or government grants and the surplus is not credited to capital fund instead it is credited to profit and loss account, hence it is not a non-profit organization.

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