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

question 39

Multiple Choice

Which of the following statements is true of not-for-profit corporations?

• A)They provide services to their members.
• B)They must distribute all of their surplus revenues to their shareholders.
• C)They must distribute all of their excess revenues to charities.
• D)They issue stocks only to their owners.

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Definitions:

Ordinary Income

Income earned through wages, salaries, commissions, and interest, as opposed to capital gains, which are realized through the sale of assets.

Income Component

The part of an investment's return that comes from dividends or interest payments, as opposed to capital gains.

Broker-dealers

Firms that trade securities for customers and their own accounts, providing investment services.

Clients' Interests

A principle in financial and legal services that emphasizes prioritizing the needs and goals of clients above those of the professional or the firm.