Question

Write one Word / Term / Phrase for each of the following statement.

Such concerns, which are formed for rendering some useful services to its members without having profit motive.

Answer 1

‘Not for Profit’ concern

Explanation: Certain organisations are formed not to earn profits but to render services to their members or to the society at large. For example, aided schools, clubs, hospitals, societies etc. The primary motive of such organisations is to provide a service. In such organisations, Income and Expenditure Account and Balance Sheet are prepared at year end to know the surplus/deficit and the financial position.