Paul 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 are typically set up as non-profit organizations and are exempt from corporate taxes. Therefore, it is likely that the hospital in question is also exempt from corporate taxes. A) is unlikely to be true as non-profit hospitals typically have low profit margins. B) and C) are also unlikely to be true as non-profit hospitals do not issue stock certificates or pay dividends to owners.

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