Which of the Following Conditions Is Applicable to All 501(c)(3)

question 64

Multiple Choice

Which of the following conditions is applicable to all 501(c) (3) organizations?

• A)they must be classified as a church, educational, or charitable institution
• B)their earnings should be used to benefit the shareholders
• C)profit must be reinvested and used for the organization's exempt purpose
• D)shareholder earnings are limited by the tax code

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Definitions:

Dividends

A share of profits distributed by a corporation to its shareholders, typically made as a fixed payment per share of stock.

Free Market Ethical Perspective

An ethical viewpoint that emphasizes the importance of allowing markets to operate without undue government interference, advocating for voluntary transactions and individual liberty.

Utilitarianism

A philosophical theory that posits the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number of people.

Shareholder Well-being

The state of health, happiness, and prosperity of individuals who own shares in a corporation.