1. Which of the following individuals (or groups) are NOT stakeholders in not-for- profit corporations?
a. Suppliers
b. Patients
c. Managers
d. Stockholders
e. Employees
2. True or False: The primary goal of not-for-profit corporations generally is expressed in a mission statement that often involves service to the community.
3. Which of the following statements about not-for-profit corporations is most correct?
a. They can issue tax-exempt (municipal) debt.
b. They typically pay federal income taxes.
c. They typically pay local and state taxes.
d. Community residents exercise control of such corporations by voting for the board of directors (trustees).
e. They pay dividends to owners.
4. Which of the following statements about the legal forms of for-profit business organization is most correct?
a. Corporations are easier to form than are proprietorships.
b. Partnerships are applicable when there are more than three owners, while proprietorships are used when there are three or fewer owners.
c. Corporations have the advantage of limited liability to owners.
d. Hybrid forms of business cannot be used by healthcare organizations.
e. With corporations, income is taxed only once, and hence they typically are more tax efficient than proprietorships or partnerships.
5. Which of the following equations best describes the accounting identity for a not-for-profit organization?
a. Assets = Liabilities + Equity.
b. Net Assets = Liabilities + Equity.
c. Assets = Liabilities + Net Assets.
d. Net Assets – Liabilities = Equity.
e. Liabilities = Assets + Equity.