Question

Distinguish between commercial and non-commercial organisations.

Answer 1

Basis of distinction	Commercial organisations	Non-commercial organisations
Purpose	Commercial organisations are formed to carry on business activities with the aim of earning profits.	Non-commercial organisations are formed to promote social, cultural, religious, charitable, or other non-economic objectives without the primary aim of making profits.
Nature of activities	They engage in buying, selling, manufacturing, service provision and other business-related operations.	They are involved in social service, charity, education, cultural promotion and mutual benefit activities.
Profit motive	Their main goal is to earn profits from their business operations.	Their motive is not to make profits but to serve society and promote welfare.
Revenue sources	They earn revenue mainly through the sale of goods and services.	They raise funds through donations, grants, membership fees, and sometimes nominal service charges.
Examples	Reliance Industries, Tata Steel, Hindustan Unilever Limited, Bajaj Auto, Apollo Hospital.	Red Cross Society, Child Relief and You (CRY), Tech for India, SEWA (Self Employed Women’s Association), Help Age India.