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

question 8

Multiple Choice

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

• A) fund capital is obtained by retaining earningsσif all earnings are paid out as dividends, no fund capital is created.
• B) preferred stock is never used by not-for-profit firms.
• C) not-for-profit firms are not allowed to raise capital by borrowing.
• D) not-for-profit firms usually have high dividend payouts.
• E) since not-for-profit firms are tax exempt, there is no tax advantage to debt capital.

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Definitions:

Public Policies

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A set of beliefs and values about gender roles, identities, and relations, which can shape societal norms, personal identities, and public policies.

Gender Identity

An individual's personal sense of their own gender, which may or may not correspond to the sex assigned at birth.

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A naturally reinforcing substance or event, such as food or water, that satisfies a basic biological need without prior learning.