Which of the following is a characteristic of a nonprofit corporation?
A) The trustees have unlimited liability status.
B) It enjoys tax-exempt status.
C) It is formed to provide a professional service.
D) It is owned by and operated for the benefit of patrons using its services.

Question

Quizplus · Accepted Answer

One of the main characteristics of a nonprofit corporation is that it enjoys tax-exempt status. This means it does not have to pay federal income tax or state sales tax on goods and services sold as long as it meets certain requirements set by the IRS. The other choices are not necessarily true for all nonprofit corporations. Nonprofit corporations can have limited liability status, be formed to provide charitable, educational or other types of services, and be owned by and/or operated for the benefit of their members or the general public.

Which of the Following Is a Characteristic of a Nonprofit