Which of the Following Statements About a Not-For-Profit Firm's Sources

question 3

Multiple Choice

Which of the following statements about a not-for-profit firm's sources of capital is most correct?

• A) Since not-for-profit firms are tax exempt, there is no tax advantage to debt capital.
• B) Fund capital is obtained by retaining earnings--if all earnings are paid out as dividends, no fund capital is created.
• C) Preferred stock is never used by not-for-profit firms.
• D) Not-for-profit firms are not allowed to raise capital by borrowing.

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Definitions:

Data Members

Variables that hold data specific to an instance of a class, also known as fields or properties.

Public

A keyword in many programming languages specifying that a variable, method, or class is accessible from any other code in the same environment.

Private

In object-oriented programming, an access modifier that restricts visibility of a class member to within the class itself.

Static

A keyword in programming that denotes a member of a class that belongs to the class itself rather than to any specific instance of the class.