Excess revenues gained by a nonprofit are invested in stock markets.

Name: Excess revenues gained by a nonprofit are invested in stock markets.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Nonprofits are not allowed to distribute their profits to individuals or shareholders. Any excess revenues must be reinvested in the organization's mission or used for charitable purposes. Nonprofits may invest funds in a variety of ways, but investing in stock markets for the purpose of generating profit is not in line with their tax-exempt status.

Excess Revenues Gained by a Nonprofit Are Invested in Stock