One of the common classifications based on organizations aims and functions is the one argued by Blau and Scott. As to their argument, we can separate organizations into four basic types on a very simple level.

Mutual Benefit Organization

Raison d’etre of mutual benefit organizations is to increase their members and thus the benefit they have. Political parties, clubs, and professional organizations are examples of mutual benefit organizations. Individuals tend to participate in these organizations just to make use of their own benefits to the organization. Members of these organizations begin shaping them since their establishment. However, when these organizations reach a certain size and become active in their environments, the potential of members to influence them decreases. This kind of organizations is inclined to conflicts. When the needs of members are not satisfied fully and completely, possible and potential conflicts and problems are among the most encountered problems with this type of organizations. That is why the failure rate of these organizations is quite high.

Business Concerns

Business organizations are established with the aim of economic benefit. The fundamental problem of these organizations is operating efficiency and achievement of maximum gain at minimum cost for further survival and growth in competition with other organization. This type of organization has also a high failure rate. Survival and sustainability are other important problems that business organizations handle. In today’s fast-changing business environment, these organizations suffer the pressure of solving problems and learning in flexible and quicker ways. They are also expected to have innovative processes in a time when the competition is really fierce and global. Facebook, HSBC Bank, IBM, General Motors, Turkish Airlines are examples of these organizations. Even though they all differ from each other in terms of their nature, their goal is to survive and make the profit for growth. The main beneficiaries of commercial organizations are their owners or shareholders.

Service Organizations

Many service organizations are formed not for profit but for offering services to customers in the relevant community. Educational institutions, hospitals, animal protection associations, environment protect associations and various non-profit organizations are examples of these service organizations. These organizations are generally funded by small fees, donations, grants, contributions by members, or government assistance. The main beneficiaries of non-profit organizations are customers and communities. Their main problem is the lack of professional management. A professional way of an organization may be costly for such foundations.

Commonwealth Organizations

These organizations, which are basically for social services, are formed to offer standard services for the majority of the population. The motivator of these organizations is not profit. Police offices, army forces, courts, fire services, and other public institutions are examples of these organizations. The beneficiaries of commonwealth organizations are ordinary people in general.

As also understood from the information given the correct answer is “D”. Political parties, clubs, professional organizations are not examples of business organizations, but mutual benefit organizations. On the other hand, Facebook, HSBC Bank, IBM, General Motors, Turkish Airlines are not example of mutual benefit organizations, but business organizations.