Which of the Following Is a Requirement for Exempt Status

question 107

Multiple Choice

Which of the following is a requirement for exempt status?

• A) The organization does not exert political influence.
• B) The organization has not been subject to intermediate sanctions for the past 24 months.
• C) The organization serves some type of common good.
• D) Only a. and c.
• E) a., b., and c.

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Definitions:

Return on Assets (ROA)

A financial ratio indicating how profitable a company is relative to its total assets, calculated as net income divided by total assets.

Discounted Payback

The period of time it takes for the cash flows from an investment to equal the initial cost of the investment, accounting for the time value of money.

Rate of Return

The improvement or reduction in the value of an investment within a specified interval, articulated as a percentage of the investment’s first cost.

Cash Inflow

Money coming into a business or project from various sources, including sales, investments, and financing activities.