Which of the Following Is a Legitimate Reason for a Private

question 96

Multiple Choice

Which of the following is a legitimate reason for a private not-for-profit to generate a surplus?

• A) Retiring debt.
• B) Establishing working capital.
• C) Both A & B above.
• D) Neither A nor B above

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Definitions:

Reimburse

To pay back someone for expenses they have incurred.

Gratuitous Agency

Gratuitous agency refers to an arrangement where an agent acts on behalf of a principal without receiving any compensation for their services, often based on personal or familial relationships.

Terminable

Describing something, such as a contract or employment, that can be ended or terminated, usually under specific conditions outlined within the agreement.

Revocation

The official withdrawal or cancellation of a right, privilege, license, or contract, often by the party who granted it or by law.