Which of the Following Is Not True About Not-For-Profit Corporations

question 4

Multiple Choice

Which of the following is not true about not-for-profit corporations:

• A)formed to serve some public purpose rather than financial gain
• B)exempt from paying income taxes if its purpose is religious,educational, scientific or literary and its revenues are less than $1 million
• C)those who contribute to not-for-profit corporations can take a tax deduction
• D)there are more than 1.5 million not-for-profit organizations in the U.S.

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Definitions:

Raise Capital

The process by which a company or organization obtains money for growing operations, typically through the issuance of stocks or bonds.

Investment Bankers

Professionals who work for financial institutions, facilitating mergers, acquisitions, and issuing of securities for corporations and governments.

Commercial Bankers

Professionals working in commercial banks that provide a variety of financial services including loans, deposits, and investment products to businesses and individuals.

Credit Raters

Agencies or entities that assess the creditworthiness of issuers of debt securities, determining their ability to make timely interest payments and repay the principal.