Teal, Inc, Is a Private Foundation Which Failed to Distribute an an Adequate

question 30

Multiple Choice

Teal, Inc., is a private foundation which failed to distribute an adequate amount of income for the exempt purpose of Teal.Which of the following statements is correct?

• A)An excise tax in the form of an initial tax at the rate of 5% may be imposed on Teal.
• B)An excise tax in the form of an initial tax at the rate of 2.5% may be imposed on the foundation manager.
• C)An excise tax in the form of an additional tax at the rate of 100% may be imposed on Teal.
• D)An excise tax in the form of an additional tax at the rate of 50% may be imposed on the foundation manager.
• E)None of the statements is correct.

---

Definitions:

Decisions

The process of making choices among various options based on the analysis and judgment of the situation.

Ethical Obligations

Moral duties or commitments that guide individuals or organizations in their actions and decisions.

Competency

The ability to do something successfully or efficiently, often referring to a specific skill or type of behavior.

Standardization

Standardization is the process of implementing and developing technical standards to ensure consistency, safety, and interoperability of products or methods.