true all fols bussiness which has prophit motive is alled as non trading concern
Answers
Explanation:
Non-Trading Concerns
True Tamplin
Written by True Tamplin, BSc, CEPF®
Updated on October 1, 2021
Organizations (also known as concerns) may be classified as follows:
Profit-making or trading concerns
Non-trading concerns or non-profit making organizations
Profit-Making Organizations
Profit-making organizations buy and sell merchandise with the expectation of earning profit. Examples of profit-making organizations are commercial banks, insurance companies, and textile mills.
Non-Profit Making Organizations
Non-profit making organizations (or non-trading concerns) exist for the benefit of the community. They seek to provide public goods without trading to make a profit.
Examples of non-trading concerns include civil hospitals, state-owned educational institutions, public libraries, orphanages, sporting and athletics clubs, and societies of various kinds.
Characteristics of Non-Trading Concerns
The main characteristics of non-trading concerns are the following:
Objective
The main objective of non-trading concerns is to provide goods or services that fulfill a social need. There is neither a profit motive nor an expectation of earning net income.