Brady decides to start a trust-run hospital to help the poor get expensive treatments for free.Which of the following is most likely to be true of the hospital?
A)It has a high profit margin.
B)It issues stock certificates.
C)It pays dividends to owners.
D)It is exempt from corporate taxes.

Question

Quizplus · Accepted Answer

Trust-run hospitals, especially those aimed at helping the poor and providing free treatments, are often set up as non-profit organizations. As such, they may qualify for tax-exempt status, meaning they would not have to pay corporate taxes. This is in contrast to for-profit entities that issue stock, pay dividends, and aim for high profit margins.

Brady Decides to Start a Trust-Run Hospital to Help the Poor