Which of the Following Statements Is/are Correct with Respect to the Unrelated

question 45

Multiple Choice

Which of the following statements is/are correct with respect to the unrelated business income tax (UBIT) ?

• A)The UBIT does not apply if the business is staffed by volunteers.
• B)The UBIT does not apply if all of the products sold by the business are donated.
• C)The UBIT does not apply if the gross profit margin is not greater than the highest corporate tax rate.
• D)Only a.and b.are correct.
• E)a., b., and c.are all correct.

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Definitions:

Year 2021

The period of time that began on January 1, 2021, and ended on December 31, 2021.

Economy

A system by which goods and services are produced, distributed, and consumed within a society or geographical area.

Phillips Curve

An economic theory that suggests an inverse relationship between the rate of inflation and the rate of unemployment within an economy.

Government Policy

The actions, laws, or regulations established by governments to guide economic, social, and administrative issues.