One of the Requirements for an Exempt Organization Being Classified

question 51

Essay

One of the requirements for an exempt organization being classified as an unrelated trade or business is the "not substantially related" requirement.That is, the trade or business is not substantially related to the exempt purpose of the organization.How can an exempt organization avoid satisfying this requirement?

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Definitions:

Extinction

In the field of behavioral psychology, the phenomenon where a learned response gradually becomes less frequent and ultimately vanishes because the previously associated stimulus is not presented alongside the original, unconditioned stimulus anymore.

Classical Conditioning

A process of learning through which two stimuli are habitually paired; the response, initially drawn out by the second stimulus, is eventually evoked by just the first stimulus.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually triggers a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that instinctively and automatically induces a response without previously being learned.