Which of the Following Requirements Are Among the Three Requirements

question 86

Multiple Choice

Which of the following requirements are among the three requirements that must be satisfied for an exempt organization to be subject to the unrelated business income tax?

• A)The exempt organization conducts a trade or business.
• B)The trade or business is substantially related to the exempt purpose of the organization.
• C)The trade or business normally generates an annual profit of at least $25,000.
• D)Only a.and c.
• E)a. ,b. ,and c.

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Definitions:

Shares

Shares represent an ownership stake in a company or financial asset, entitling the holder to a proportional share of profits, distributed as dividends, if announced.

No-par Common Stock

Shares issued without a specified face value, allowing the company flexibility in setting their price.

Stated Value

A value assigned to no-par stock by the board of directors of a company, used as the basis for capital accounts in the shareholders' equity section of the balance sheet.

Par Preferred Stock

A type of preferred stock that has a nominal face value and is entitled to dividends before any dividends can be issued to common stockholders.