A Private College Received a $2,000,000 Gift from a Donor

question 26

Multiple Choice

A private college received a $2,000,000 gift from a donor. The college's governing board voted to use the $2,000,000 to establish an endowment,with the intent to keep the principal intact forever. The income from the endowment was to be used to fund research in the biology department. How should the college classify the $2,000,000 gift?

• A) Unrestricted.
• B) Temporarily restricted.
• C) Permanently restricted.
• D) Either temporarily or permanently restricted.

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Definitions:

Egos

A person's sense of self-esteem or self-importance.

Corporate Integration

The process of combining different companies or business functions within a corporation to create a more efficient and unified entity.

Joint Mergers

The combination of assets, operations, or management between two or more entities to pursue common goals or improve efficiency.

Client Opposition

Situations where clients or consumers express disagreement or resistance against a company's practices, products, or services.