Which of the Following Activities Is Not Subject to the Feeder

question 86

Multiple Choice

Which of the following activities is not subject to the feeder organization rules?

• A)At least 80% of the net income of the for-profit entity is contributed to the exempt organization for a consecutive three-year period.
• B)A trade or business where substantially all the work is performed by volunteers.
• C)A trade or business of selling merchandise where substantially all of the merchandise has been received as contributions or gifts.
• D)Only b.and c.
• E)a., b., and c.

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Definitions:

Demand Instrument

A financial document that requires payment to be made by the issuer upon request by the holder of the document.

Demand Instrument

A financial document that requires immediate payment upon presentation.

Specific Time

A precise or particular moment or duration identified for an event or action.

Negotiable Instrument

A written document guaranteeing the payment of a specified amount of money, either on demand or at a set time.