Which of the Following Statements Is Correct

question 83

Multiple Choice

Which of the following statements is correct?

• A) A feeder organization is a division of a tax-exempt organization and it is subject to the Federal income tax.
• B) A feeder organization is a tax-exempt organization whose purpose is to provide food to underprivileged children.
• C) A feeder organization is a taxable organization whose purpose is to provide reduced cost meals to its employees that are excluded from the employee's gross income.
• D) Only a. and b. are correct.
• E) None of the above statements is correct.

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Definitions:

Price Improvement

The potential for a trade to be executed at a better price than what is currently quoted publicly, offering a benefit to the buyer or seller.

Private Equity

Investments in companies whose shares are not publicly traded in a stock market.

Investment Banking

A sector of the banking industry that helps individuals and organizations raise capital and provides financial consultancy services.

Securities Act of 1933

A U.S. law enacted to ensure greater transparency in financial statements and to reduce fraud and manipulation in the securities markets.