Which of the Following Activities Is Not Subject to the Feeder

question 115

Multiple Choice

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

• A) One hundred percent of the net income of the for-profit entity is contributed to the exempt organization.
• 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:

Large Variances

Significant differences between planned and actual figures in a budget, project, or any performance measurement, indicating greater deviations from expectations.

Consistent Trends

Patterns or changes in data that continue over a period of time in a similar manner.

Standard Direct Labour Hours

The estimated amount of labor hours required to produce a certain amount of output under normal conditions.

Actual Production

The real quantity of goods or services produced within a specific period, as opposed to planned or theoretical outputs.