John Forsyth Is the Head of the Securities Exchange Commission

question 116

Multiple Choice

John Forsyth is the head of the Securities Exchange Commission.There are new rules pending before the SEC that would require lawyers to blow the whistle on their clients.The American Bar Association,which is opposed to the legislation,has just offered Mr.Forsyth's son a full scholarship to the law school of his choice.

• A)The in-kind contribution to his son is a violation of the law.
• B)A scholarship to Mr.Forsyth would be illegal, but not to his son.
• C)The ABA has not violated any law if there is no connection between the proposed rule and the scholarship.
• D)none of the above

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Definitions:

Philanthropic Nonprofit Organizations

Entities dedicated to advancing welfare or social causes without the intent of making a profit for their owners or shareholders.

Purely Philanthropic

Activities or initiatives completely driven by a desire to promote the welfare of others, typically characterized by voluntary financial donations without expectation of any return.

Third Sector

A term used to describe the segment of society that encompasses nonprofit organizations, charities, and voluntary groups which operate independently from the government and the private sector.

Tax-Exempt Sector

Part of the economy made up of organizations that are exempt from paying federal and/or state income taxes, typically including charities, religious organizations, and other nonprofits.