Not-For-Profit Entities That Are Eligible to Obtain Tax-Exempt Status Under

question 26

Multiple Choice

Not-for-profit entities that are eligible to obtain tax-exempt status under Internal Revenue Code section 501(c) (4) are

• A) Those promoting literacy.
• B) Those promoting scientific research.
• C) Chambers of Commerce.
• D) Professional sports leagues.
• E) Those functioning exclusively to promote social welfare.

---

Definitions:

Opportunity Cost

The value of the best alternative that must be foregone as a result of choosing another option.

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit.

Shutdown Decisions

Decision-making processes within a company regarding when to cease operations temporarily or permanently due to various reasons, such as unprofitability.

Capital

Refers to financial assets or resources that businesses use to fund their operations and growth.