Which of the Following Statements Is Correct

question 89

Multiple Choice

Which of the following statements is correct?

• A)The unrelated business income tax (UBIT)does not apply to exempt organizations that receive broad public support.
• B)The unrelated business income tax (UBIT)treats the tax-exempt entity as if it were subject to the corporate income tax on its unrelated business income.
• C)Unrelated business income is income derived from activities not related to the exempt purpose of the exempt organization.
• D)Only b.and c.are correct.
• E)a. ,b. ,and c.are correct

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Definitions:

Deadweight Loss

A reduction in economic efficiency that happens when the balance for a product or service cannot be reached or is impossible to achieve.

Profit-maximizing Monopoly Pricing

Profit-maximizing monopoly pricing is a strategy where a monopolist sets a price at the highest possible level that does not allow new entrants, maximizing its profit.

Marginal Revenue

The additional income that is generated by increasing product sales by one unit.

Marginal Cost

The cost incurred by producing one more unit of a good or service.