What Type of Organization Is Always a Private Foundation

question 49

Multiple Choice

What type of organization is always a private foundation?

• A)A church that receives all of its support from members
• B)A scholarship fund for policemen that receives half of its income from interest and dividends
• C)A school that receives government grant funds
• D)A church that derives 5 percent of its income from rental of its sanctuary for concerts by aspiring concert musicians.

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Definitions:

Required Return

The minimum expected return by investors for investing in a particular security or project, reflecting the risk level.

Investment

The allocation of resources, such as capital, time, or assets, with the expectation of receiving future benefits or returns.

Useful Life

The estimated duration of time an asset is expected to be useful for the business before it becomes obsolete or too costly to maintain.

Operating Cost

Expenses associated directly with the day-to-day running of a business, including costs for materials, labor, and utilities.