Which of the Following Statements Is Correct Regarding the Unrelated

question 90

Multiple Choice

Which of the following statements is correct regarding the unrelated business income tax (UBIT) ?

• A) To be subject to the UBIT, the exempt organization must conduct a trade or business, the trade or business is not substantially related to the exempt purpose of the organization, and the trade or business is regularly carried on by the organization.
• B) To be subject to the UBIT, the exempt organization must conduct a trade or business, the trade or business must be substantially related to the exempt purpose of the organization, and the trade or business must be regularly carried on by the organization.
• C) To be subject to the UBIT, the exempt organization must conduct a trade or business, the trade or business is not substantially related to the exempt purpose of the organization, and the trade or business is carried on during more than half the year.
• D) An exempt entity that conducts a business that competes with for-profit businesses automatically is subject to the UBIT.
• E) None of the above statements is correct.

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Definitions:

Proper Hygiene

Proper hygiene encompasses the practices and habits to clean and care for the body to maintain good health and prevent the spread of diseases.

Renal Calculus

Solid concretions or crystal aggregations formed in the kidneys from dietary minerals in the urine; commonly known as kidney stones.

Intravenous Pyelography

A diagnostic imaging procedure that uses a contrast dye and X-rays to observe the structure and functionality of the urinary system.

Fluid Intake

The total volume of fluids consumed by an individual, including water, beverages, and moisture from food, which is critical for maintaining health and body functions.