Which of the Following Is a Reason Why an Not-For-Profit

question 18

Multiple Choice

Which of the following is a reason why an not-for-profit organization might fail to qualify for tax-exempt status?

• A) It is operated primarily for the benefit of its members.
• B) Its officers are paid excessive wages.
• C) Its primary purpose is to promote the passage of legislation favorable to institutions of higher education.
• D) It has unrelated business income.

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Definitions:

Reflection

The process of introspection, contemplating one’s thoughts and feelings, or the examination of a past event.

Nonverbal Behavior

Communication methods other than spoken or written language, such as gestures, facial expressions, and posture.

Intuition

An ability to understand or know something immediately based on instinctive feelings rather than conscious reasoning.

Curiosity

A strong desire to know or learn something.