Which of the Following Requirements Must Be Satisfied for an Organization

question 148

Multiple Choice

Which of the following requirements must be satisfied for an organization to be subject to the unrelated business income tax (UBIT) ?

• A)The organization is an exempt organization.
• B)The organization conducts a trade or business that is regularly carried on.
• C)The trade of business is not substantially related to the exempt purpose of the organization.
• D)Only b.and c.must be satisfied.
• E)a., b., and c.must be satisfied.

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Definitions:

Employer-provided

Describes benefits or services supplied by an employer to their employees, often including health insurance, pensions, or training.

Group Medical Insurance

A healthcare policy issued to a group of people, offering uniform coverage and benefits to all members, often through an employer.

Independent Contractors

Individuals or businesses that provide goods or services to another entity under terms specified in a contract, without being legally considered employees.

Contract Basis

A method or agreement involving specific terms and conditions under which services or work will be performed.