Question

Not-for-profit organisations are organised as charitable trusts and subscribers to such organisation are called _________.

• A. owners
• B. members
• C. shareholders
• D. directors

Answer 1

The correct option is B members

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Not for Profit organisations are formed for providing service to specific group or public at large such as education, health care, sports and so on. These are organised as charitable trusts/ societies and subscribers to such organisations are called members. These organisations have service as the main objective. Normally these organisations do not undertake any business activity and are managed by trustees/executive committee. They also have to maintain proper accounts and prepare financial statements.

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