Which of the Following Statements Is True of Not-For-Profit Corporations

question 39

Multiple Choice

Which of the following statements is true of not-for-profit corporations?

• A)They provide services to their members.
• B)They must distribute all of their surplus revenues to their shareholders.
• C)They must distribute all of their excess revenues to charities.
• D)They issue stocks only to their owners.

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Definitions:

Entrepreneurs

Individuals who initiate, manage, and take on the risks of a business or enterprise, often bringing innovation to the market.

Microcredit

Refers to the provision of small loans to individuals in impoverished countries or regions to promote entrepreneurship and alleviate poverty.

Credit

The provision of resources (such as money) by one party to another, where the second party does not reimburse the first party immediately but promises to return those resources or repay their value at a later date.

Small-Business Owners

Small-business owners refer to individuals who own and operate businesses that are typically defined by small scale, local operation, and less revenue compared to larger corporations.