Match the Following Statements

question 32

Multiple Choice

Match the following statements.
-The trade or business is not substantially related to the exempt purpose of the organization.

• A)Exempt from tax on unrelated business.
• B)Inappropriate definition.
• C)Exempt organization may be subject to the tax on unrelated business income.
• D)Annual information return of an exempt organization that is required to file a return and which is not a private foundation.
• E)Appropriate definition.
• F)Annual information return of a private foundation.

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Definitions:

Induced Consumption

The portion of consumption that changes as a result of changes in income, with higher incomes leading to increased consumption.

Autonomous Consumption

The amount of consumption that occurs regardless of current income levels, reflecting basic spending needed to survive.

Saving

The portion of income not spent on consumption but kept aside for future use, which may be invested to generate wealth.

Disposable Income

The amount households can devote to saving and spending once income taxes have been factored in.