What Happens When a Not-For-Profit Corporation Has a Positive Net

question 26

Multiple Choice

What happens when a not-for-profit corporation has a positive net income?

• A) It must invest the net income in the business.
• B) It must reduce its fees.
• C) It must donate the net income to a charity.
• D) It must report net income to the governing board.

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Definitions:

Control Group

In an experiment, the group that does not receive the treatment and is used as a benchmark to measure how the other tested groups compare.

Music

A form of art that uses sound organized in time, often combining vocal or instrumental sounds to produce harmony, rhythm, and expression of emotion.

Productivity

The efficiency at which goods or services are produced, often measured in terms of output per unit of input.

Experimental Group

A group of subjects in an experiment who are exposed to the variable under study.