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

question 4

Multiple Choice

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

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

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Definitions:

Health

A state of complete physical, mental, and social well-being.

Canada's Health Act

Legislation that sets the framework for the provision of universal health care in Canada, emphasizing public administration, comprehensiveness, universality, portability, and accessibility.

Disabilities

Physical or mental conditions that limit a person's movements, senses, or activities, often requiring accommodations for full participation in society.

Daily Living

Activities and tasks that are performed regularly by an individual in the course of a normal day, including basic self-care, work, and leisure activities.