The Status of _______________ Organizations Are Held in Trust, Rather

question 17

Multiple Choice

The status of _______________ organizations are held in trust, rather than owned; there are many hospitals that will fit into this tax status.

• A) for-profit
• B) not-for-profit
• C) All of these are correct.
• D) None of these are correct.

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Definitions:

Right of First Refusal

A contractual right that gives its holder the option to enter into a business transaction with the owner of something, before the owner is entitled to enter into that transaction with a third party.

Option Agreement

An agreement that gives a party the option, but not the obligation, to buy or sell an asset at a predetermined price and date.

Buy-and-Sell Agreement

A legally binding agreement between co-owners that outlines the procedure for the redistribution of shares of a departing owner, often used in partnerships and close corporations.

Transfer Restriction

Legal limitations placed on the transferability of securities or other assets, which may require certain conditions to be met before transfer can occur.