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Q: What is advantages and disadvantage of non trading organisations?
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What makes NGOs different from normal businesses?

NGO's - Non Government Organisations - are different from Normal businesses as they are not governed by the Goverment. Non Government Organisations are different, as they do not work "for profit", and operates independently from the government.


What is the difference between trading and non-trading organizations?

The difference between trading and non-trading organizations lies in their primary activities and objectives: Trading Organizations: Primary Activity: Trading organizations primarily engage in buying and selling goods or services for the purpose of generating profit. These goods or services can vary widely depending on the nature of the business, ranging from physical products like consumer goods or commodities to intangible services like consulting or software development. Revenue Generation: Revenue for trading organizations is primarily derived from the markup or margin on the goods or services they sell. They aim to buy low and sell high to generate profits. Examples: Retailers, wholesalers, manufacturers, distributors, importers, exporters, and e-commerce companies are examples of trading organizations. Non-Trading Organizations: Primary Activity: Non-trading organizations, also known as non-profit organizations or not-for-profit organizations, are entities that do not aim to generate profits for distribution to owners or shareholders. Instead, they typically have social, charitable, educational, religious, or other altruistic objectives. Revenue Generation: While non-trading organizations may generate revenue through various activities such as donations, grants, membership fees, or program fees, any surplus funds are reinvested into furthering their mission rather than distributed to owners or shareholders. Examples: Charities, foundations, religious institutions, educational institutions, healthcare organizations, and government agencies are examples of non-trading organizations. In summary, trading organizations focus on buying and selling goods or services to generate profits, while non-trading organizations operate with a mission-driven focus and reinvest any surplus funds to further their social, charitable, or other non-profit objectives.


How do non profit organisations generate profit?

It's not they they are intended to not generate profits. It's that they don't generally pay taxes on their profits. Non profits generate income through a variety of sources including contributions, grants and program fees.


Aims of a voluntary sector business?

The voluntary sector consists mainly of non-profit organisations like charities so you can instantly conclude that they don't exist to make profit.


What is an example of a non programmed decision?

non programmed decisions are non routine decisions. Often difficult to make due to their complexity and the fact that they occur infrequently. When a problem has not taken the same form as before, or is extremely complicated or significant it calls for a non-programmed decision. Well planned and highly structured organisations reduce the number of non-programmed decisions as much as possible. Handling non-programmed decisions requires skill and original thinking. The more non-programmed decisions, the greater the judgement needed. Higher management deals with non-programmed decisions. Examples of such would be the decision to acquire another organisation, or to sell off a non-profitable vision. Deciding which global markets offer the most potential value.

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what is the definition of non trading organisations? A non-trading company has no significant accounting transactions, which simply means no entries in the company's accounting records and which generally are not engaged in trading of goods or services and thus the books of accounts comprises of only the sources of Income and expenditure earned/incurred during a given period. This is useful for non-profit organizations such as Trusts, Educational Institutions, NGOs, and Hospitals etc.


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