Which of the Following Statements Is Correct

question 88

Multiple Choice

Which of the following statements is correct?

• A) A private foundation is, in general, exempt from Federal income tax.
• B) A private foundation may be subject to certain types of Federal income tax.
• C) If a broad public support test is satisfied, an exempt organization that otherwise would be classified as a private foundation is not classified as a private foundation.
• D) Only b. and c. are correct.
• E) a., b., and c. are correct.

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Definitions:

Economy Sector

A segment of the economy, often categorized into primary (raw materials), secondary (manufacturing), tertiary (services), and quaternary (information) sectors.

Permanent Underclass

A portion of society that finds itself at the very bottom of the social class ladder, underneath the primary segment of the working class.

U.S. Population

The total number of people living in the United States at a given time.

Healthcare Spending

The total amount of money spent on healthcare services and products within a country over a specified period.