Which of the Following Statements About a Not-For-Profit Firm's Ownership

question 4

Multiple Choice

Which of the following statements about a not-for-profit firm's ownership is most correct?

• A) The residual earnings (profits) of not-for-profit firms can be distributed to the firm's top managers.
• B) Not-for-profit firms are exempt from federal taxes, but they must pay state and local taxes, including property taxes.
• C) Upon liquidation of a not-for-profit firm, the proceeds from the sale of its assets are distributed, on a pro rata basis, to the firm's employees.
• D) None of the profits are used for private inurement.
• E) Not-for-profit firms are governed by a board of trustees whose members are elected by the community at large.

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Definitions:

Free Nerve Endings

Sensory receptors found throughout most of the body that respond to pain, temperature, touch, and pressure.

Nociceptors

Specialized sensory neurons that detect signals indicating potential harm and transmit pain signals to the brain.

Tissue Damage

The physical injury or harm to body tissues resulting from various causes, such as trauma, infection, or exposure to toxic substances, leading to inflammation or dysfunction.

Cold Receptors

Sensory nerve endings that are responsive to decrease in temperature, found in the skin.