Which of the Following Statements Is True of Nonprofit Organizations

question 3

Multiple Choice

Which of the following statements is true of nonprofit organizations?

• A) They are usually in the business of financial gains.
• B) They employ people and take in revenue.
• C) They do not produce goods and services.
• D) They are not business-like establishments.

---

Definitions:

Allowance or Exemption

A reduction in the amount of income that is subject to tax, or a legal deduction from reported income to reduce taxable income.

Nontaxable

Income or transactions that are not subject to taxation by government authorities.

FICA-OASDI

The part of the U.S. payroll tax that funds the Social Security program, officially called Old Age, Survivors, and Disability Insurance.

FICA-Medicare

Part of the U.S. payroll tax that funds Medicare, providing health insurance to individuals aged 65 and over, and to certain younger people with disabilities.