For an Exempt Organization to Be Subject to the Unrelated

question 91

True/False

For an exempt organization to be subject to the unrelated business income tax, the trade or business must not be substantially related to the exempt purpose of the organization.

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Definitions:

Emerging Industries

Sectors that are in their initial stage of development, often characterized by high innovation and growth potential.

Production Chain

A series of steps involved in producing a product, from raw material extraction to the final goods being made available to consumers.

Services

Economic activities that provide intangible benefits or goods, such as healthcare, education, and entertainment.

Manufacturing

The process of converting raw materials or components into finished goods using tools, human labor, machinery, and chemical processing.