Q.‘Not for profit concerns’ do not have profit motive.

Correct option: Service. Not-for-profit concerns are formed to provide services (education, sports, health, charity) to their members and society, not to make profit, so they are called service organisations.

Explanation

The main aim of a not-for-profit concern (a club, school, hospital, charitable trust, etc.) is to render service, not to earn and distribute profit. Any surplus it generates is used to further its service objectives. Hence such organisations are commonly des …

Agree — not-for-profit concerns are formed for service, not for profit, so the statement is correct.

Reasoning

Not-for-profit concerns such as clubs, charitable trusts, schools, hospitals and libraries are set up to provide service or promote art, culture, education, sports or social welfare. Their features: