What are the two classifications of business organizations?

Every type of business organization is generally classified into two categories. They are:

• For-profit organizations- These business organizations are the ones which focus on maximizing profits. The owners of this type of organization decide whether to keep the profit or to spend it in the business or both. Portions of the profits are often returned to investors. Examples of profit organizations are partnerships, corporations.
• Nonprofit organizations- These business organizations are the ones which focus on providing a public benefit. It emphasizes on providing service to the community. The owners of this type of organization use any surplus funds to further the service they are providing. Examples of NPOs are trusts, charitable institutions.