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Statement I: A non-profit organisation providing free educational services generates income by selling goods. - Commercial Applications

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Question

Statement I: A non-profit organisation providing free educational services generates income by selling goods. 

Statement II: Non-profit organisations focus on serving society rather than earning profits.

Options

  • Both I and II are correct.

  • Both I and II are wrong.

  • Only I is correct.

  • Only II is correct.

MCQ
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Solution

Only II is correct.

Explanation:

  • Statement I is incorrect because non-profit organisations typically do not generate income by selling goods for profit. Instead, they often rely on donations, grants, or other funding sources to support their mission, not from selling goods for profit.
  • Statement II is correct because the primary focus of non-profit organisations is indeed to serve society, whether through education, healthcare, or other social services, rather than focusing on generating profits.

Therefore, only statement II is correct.

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Chapter 1: Introduction to Commercial Organisations - EXERCISES [Page 19]

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C. B. Gupta Commercial Applications [English] Class 9 ICSE
Chapter 1 Introduction to Commercial Organisations
EXERCISES | Q I. 28. | Page 19
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