Everett wants to start a sports club to benefit inner-city children and teach them rock climbing, mountaineering, and other outdoor sports. He wants to take donations to support the club rather than sell stock. What business form would be best for this club?
A)Not-for-profit corporation.
B)S-corporation.
C)Partnership.
D)Syndicate.

Question

​Everett wants to start a sports club to benefit inner-city children and teach them rock climbing, mountaineering, and other outdoor sports. He wants to take donations to support the club rather than sell stock. What business form would be best for this club?
A)​Not-for-profit corporation.
B)​S-corporation.
C)​Partnership.
D)​Syndicate.

Quizplus · Accepted Answer

A not-for-profit corporation is the best choice for this club because it is created for charitable or educational purposes and is exempted from paying taxes. Donations can also be tax-deductible for the donors. This form allows for the club to benefit the inner-city children without the pressure of generating profits for shareholders or owners.

​Everett Wants to Start a Sports Club to Benefit Inner-City

Everett Wants to Start a Sports Club to Benefit Inner-City