Question

State the characteristics of a commercial organisation.

Answer 1

1. It is an organisation formed to carry out business activities.
2. It is engaged in industrial or commercial activities like production, purchase, and sale of goods and services.
3. It is owned and controlled by a single person or a group of persons.
4. It is based on either a formal or informal agreement among owners.
5. It operates under separate ownership and management distinct from its owners.
6. The primary motive is to earn profits.
7. It faces various types of business risks.
8. It may be owned and managed by private individuals, government, or both.