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

question 8

Multiple Choice

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

• A) Not-for-profit firms are governed by a board of trustees whose members are elected by the community at large.
• B) The residual earnings (profits) of not-for-profit firms can be distributed to the firm's top managers.
• C) Not-for-profit firms are exempt from federal taxes, but they must pay state and local taxes, including property taxes.
• D) Upon liquidation of a not-for-profit firm, the proceeds from the sale of its assets are distributed, on a pro rata basis, to the firm's employees.
• E) None of the profits are used for private inurement.

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Definitions:

Intrinsic

Relating to the essential nature of something or coming from within, not influenced by external factors.

Middle-aged Workers

Employees typically between the ages of 40 and 65, often considered in their most productive years.

Younger Workers

Individuals in the workforce who are relatively young, often bringing fresh perspectives but facing unique challenges.

Absenteeism

refers to the habitual non-presence of an employee or student, which can negatively impact productivity and morale in a workplace or educational setting.