The Key Factors in Determining Whether an Exempt Entity's Income

question 36

True/False

The key factors in determining whether an exempt entity's income from a bingo game is unrelated trade or business income are whether substantially all the work is performed by volunteers and all of the prizes to be awarded are received as donations.

---

Definitions:

Public Company

A business entity that has traded its securities (e.g., stocks) to the general public on a stock exchange and is subject to regulatory disclosures.

Access

The ability or right to enter, approach, or use; in a business context, it might refer to the ability to use or procure resources or information.

Long-Term Capital

Financial resources that are invested in a company or project for an extended period, usually over one year, to support growth and expansion.

Public Offering

The process of offering shares of a private corporation to the public in a new stock issuance, allowing the company to raise capital from public investors.