A company created to pursue charitable, educational or other non-profit purposes is commonly described as a:
Correct answer: D. Non-profit company
- A. Holding company
- B. Public trading company
- C. Limited partnership
- D. Non-profit company
Explanation
A non-profit company is formed to advance stated social, charitable, educational or similar objectives rather than distribute profits to members. A holding company primarily controls other companies, while a limited partnership is a profit-oriented business form.
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About Nature and Forms of Business Organisation
Business organisation combines people, capital, materials and entrepreneurship to produce goods or services and earn profit, while also meeting customer and social needs. Coverage includes sole proprietorships, partnerships, companies and cooperatives, with comparisons of ownership, liability, control, profit sharing, continuity and legal status.
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