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:

Depth Perception

The visual ability to perceive the world in three dimensions (3D) and to judge the distance of objects.

Neuroimaging

The use of various techniques to directly or indirectly image the structure, function, or pharmacology of the nervous system.

Visual Acuity

The clarity or sharpness of vision, measured as the ability to discern letters or numbers at a standardized distance on an eye chart.

Recognize

The ability to identify or acknowledge the existence, validity, or legality of something.