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:

Medical Necessity

A legal and medical determination that a service or treatment is reasonably necessary for the diagnosis or treatment of illness or injury.

Insurance Carriers

Companies that provide insurance policies, offering protection against financial losses stemming from various risks.

Insurance Coverage

A contractual agreement in which an insurer agrees to compensate or protect an insured party against specified losses or damages in exchange for a premium.