Which of the Following Statements Is Correct Regarding the Unrelated

question 90

Multiple Choice

Which of the following statements is correct regarding the unrelated business income tax (UBIT) ?

• A) To be subject to the UBIT, the exempt organization must conduct a trade or business, the trade or business is not substantially related to the exempt purpose of the organization, and the trade or business is regularly carried on by the organization.
• B) To be subject to the UBIT, the exempt organization must conduct a trade or business, the trade or business must be substantially related to the exempt purpose of the organization, and the trade or business must be regularly carried on by the organization.
• C) To be subject to the UBIT, the exempt organization must conduct a trade or business, the trade or business is not substantially related to the exempt purpose of the organization, and the trade or business is carried on during more than half the year.
• D) An exempt entity that conducts a business that competes with for-profit businesses automatically is subject to the UBIT.
• E) None of the above statements is correct.

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Definitions:

Psychic Conflicts

Internal struggles between different parts of the psyche, typically involving the conscious and unconscious mind, leading to mental distress or neurosis.

Hypnotism

A trance-like state of focused attention and increased suggestibility, often used for therapeutic purposes to modify behaviors, perceptions, and psychological distress.

Distress

A negative psychological state that arises from situations of strain or difficulty, causing anxiety or suffering.

Mental Disorder

A condition involving significant disturbances in thoughts, feelings, and behaviors, reflecting psychological, biological, or developmental dysfunctions.