A Corporation Formed for the Purpose of Maintaining a Charitable

question 9

Multiple Choice

A corporation formed for the purpose of maintaining a charitable operation is called a:

• A) nonprofit corporation.
• B) Subchapter S corporation.
• C) public corporation.
• D) closely held corporation.

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Definitions:

Disposable Income

The sum of funds households can spend and save after deducting income taxes.

APS

Average Propensity to Save, which measures the proportion of income that is saved rather than spent.

Capacity Utilization Rate

The percentage of a firm's total potential production capacity that is actually being utilized in the production of goods or services.

Manufacturing Firms

Companies engaged in the industrial process of converting raw materials into finished products through human labor and machinery.