Tax-exempt, nonprofit corporations ________.
A) cannot make a profit
B) do not have legal liability
C) are set up with a specific mission to improve society
D) pay dividends more often than for-profit corporations

Question

Quizplus · Accepted Answer

Tax-exempt, nonprofit corporations are set up with a specific mission to improve society. They can make a profit, but it is reinvested into the organization rather than being distributed to shareholders like in a for-profit corporation. Nonprofit corporations also have legal liability like any other entity. They are tax-exempt because they are not seen as operating primarily for the purpose of making a profit, but rather for the benefit of a specific cause or community.

Tax-Exempt, Nonprofit Corporations ________