Which of the Following Attributes Are Associated with Exempt Organizations

question 15

Multiple Choice

Which of the following attributes are associated with exempt organizations?

• A)Organization serves some type of common good.
• B)Organization is not a for profit entity.
• C)Net earnings do not benefit the members of the organization.
• D)Organization does not exert political influence.
• E)All of the statements are true.

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Definitions:

Adam Smith

A Scottish economist and philosopher known as the "father of economics" and the author of "The Wealth of Nations," which laid the foundation for classical economics.

Entrepreneur

A person who establishes, arranges, and manages one or more businesses, assuming higher-than-usual financial risks to achieve this.

"Invisible Hand"

A metaphor introduced by Adam Smith to describe how individual self-interest and competition can lead to social and economic benefits.

Price Mechanism

The manner in which the prices of goods or services affect the supply and demand of those goods or services, and how this interaction determines the allocation of resources.