Commercial organisations and profit based ones

This topic has 3 replies, 2 voices, and was last updated 11 years ago by Ken Garrett.

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May 30, 2015 at 4:23 pm #250679
jemma242
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Hi

What is the difference between commercial and profit based organisations?

thank you
Jemma
May 30, 2015 at 4:43 pm #250682
Ken Garrett
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I don’t think there is a worthwhile difference.

The usual distinction is between profit seeking and not-for-profit (such as a charity or government organisation). Having said that, many large charities are very commercial in their income raising activities eg shops, sponsorship and high-powered telephone operations to gather donations.. They don’t aim to make profits but they certainly aim to raise money using very professional and commercial approaches.
May 30, 2015 at 5:31 pm #250696
jemma242
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OK, it was mentioned at the end of the EVA article part 2 that it is more appropriate tool for measuring the performance of commercial organisations than profit-based ones, which confused me slightly.
May 30, 2015 at 6:27 pm #250715
Ken Garrett
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It confuses me too!

If the author makes a statement like that then it should be explained and justified.

Don’t worry about it. : -)
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