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CS Professional · CSR and Social Governance · Financial and Non-financial Reporting of Different Non-Corporate Entities

Four organisations are listed: (P) Sri Vidya Education Society registered under a societies law, (Q) Bharat Traders, a registered partnership firm, (R) Aarogya Public Trust created by a trust deed, (S) Nirmaan Foundation, incorporated as a company under Section 8 of the Companies Act, 2013. Which is NOT a non-corporate entity?

Nirmaan Foundation is not a non-corporate entity because it is incorporated as a company under the Companies Act, 2013, making it a body corporate even though its purpose is charitable. The society, the partnership firm and the trust are all non-corporate entities.

  1. AS, because it is a company incorporated under the Companies Act, 2013Correct
  2. BP, because societies are corporate bodies
  3. CQ, because partnership firms are always companies
  4. DR, because trusts are incorporated under the Companies Act

Explanation

A Section 8 company is incorporated under the Companies Act and is a body corporate, so it is a corporate entity despite its charitable purpose. Societies, partnership firms and trusts are non-corporate. The others in the options misstate their nature.

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