Which of the Following Conditions Is Applicable to All Not-For-Profit

question 74

Multiple Choice

Which of the following conditions is applicable to all not-for-profit organizations?

• A)They must be classified as a church,educational,or charitable institution.
• B)Their earnings should be used to benefit the shareholders.
• C)Profit must be reinvested and used for the organization's exempt purpose.
• D)Shareholder earnings are limited by the tax code.

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Definitions:

Succession Problem

The issue of who will run a business when the current head leaves.

Leadership

The act of guiding, directing, or influencing followers and orchestrating strategies to achieve a common goal.

Family Business

A business owned and controlled by members of a family.

Succession Plan

A plan for how a firm’s leadership transition and related financial matters will be handled.