TXX 5770-Which of the following entity types cannot become

1. Which of the following entity types cannot become a 501(c)(3)?a. A Delaware LLCb. A Partnershipc. An Illinois Corporationd. A Charitable Trust2. Which of the following is most likely true about an Unincorporated Association that was a 501(c)(3)?a. It was formed by filing its Charter with the applicable Secretary of Stateb.b) It will be taxed like a partnershipc.c) It cannot qualify as a public charityd.d) Its actors have more exposure for potential personal liability (as compared to actors of a corporate entity)3. Which of the following entity types is LEAST likely to be required to submit organizational documents with its Secretary of State? a. A noncharitable, ordinary, trustb.b) An LLCc.c)A Corporationd.d)Each of the above entity types is typically required to submit its organizational documents with its Secretary of State5. “ Notwithstanding any other provision of these articles, the corporation shall not carry on any other activities not permitted to be carried on (a) by a corporation exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code,or the corresponding section of any future federal tax code, or (b) by a corporation,contributions to which are deductible under section 170(c)(2) of the Internal Revenue Code, or the corresponding section of any future federal tax code.”< /span>Which of the following organizational test requirements relates most to the above text?a. Purpose clauseb. b.Powers clausec.c.Dissolution claused. d.Provisions relating to private foundations6. When comparing non-profit corporations and for-profit corporations, which of the following is FALSE: a. For-profits are more likely to pay dividends to shareholdersb. Non-profits are more likely to avoid paying federal income taxesc. Contributors to a non-profit corporation are more likely to receive deductions for their contributionsd. Non-profit directors have no liability exposure 7. When comparing non-profit corporations and for-profit corporations, which of the following is FALSE: a. Both types of corporations can have directorsb. Both types of corporations can have officersc. Both types of corporations must satisfy the organizational testsd. Both types of corporations can have paying customers8. What type of 501(c)(3) is LEAST likely to provided its contributors with a deductions for their contributions? a. Testing for public safety organizationsb. Religious organizationsc. Scientific organizationsd. Literary organizations10. Which type of organization is not required to file Form 1023 to obtain status as a 501(c)(3)? a. A private foundationb. A churchc. A schoold. A hospital 11. A charitable purpose may include? a. Organizations operated for the relief of the poor, distressed or underprivilegedb. Organizations providing legal services to low-income personsc. Organizations lessening burdens of governmentd. Each of the above12. An organization’s primary function must be the presentation of formal instruction, in order for the organization to: a. Have a social purpose with activities where people might learn somethingb. Be a “school” for public charity purposesc. Become a 501(c)(3)d. Each of the above 13. Which of the following organizations is LEAST likely to claim that its exempt purpose is to educate the public? a. A hospitalb. A zooc. A planetariumd. None of the above would be considered as having the purpose of educating the public14. Which private benefit doctrine focuses most on “disqualified persons”? a. Private Benefit Limitationb. Inurement Prohibitionc. Excise Tax on Excess Benefit Transactionsd. Each of the above 15. Which private benefit doctrine focuses most on the meaning of “insubstantial”? a. Private Benefit Limitationb. Inurement Prohibitionc. Excise Tax on Excess Benefit Transactionsd. Each of the above16. Running afoul of which private benefit doctrine could cause an organization to lose its exempt status? a. Private Benefit Limitationb. Inurement Prohibitionc. Excise Tax on Excess Benefit Transactionsd. Any of the above 17. Which private benefit doctrine is most likely to focus on whether one is considered a private shareholder? a. Private Benefit Limitationb. Inurement Prohibitionc. Excise Tax on Excess Benefit Transactionsd. Each of the above18. Which of the following is the most likely reason for an organization to be content with being considered a private foundation? a. The organization desires that its net investment income be exempt from federal income taxesb. The organization plans to obtain its funding from very few sourcesc. The organization desires to avoid any limitations on its private business holdingsd. The organization desires to minimize any limitations on donor contributions19. Which of the following is FALSE about the three private benefit doctrines we covered in our Chat session? a. The relationship among the three doctrines is extremely clear to tax advisorsb. The three private benefit doctrines are often analyzed because there is not much guidance on what is a “public benefit” or a “charitable class”< /span>c. Reasonable (and substantiated) salaries to bona fide employees of a 501(c)(3) are not likely to trigger penalties under the private benefit doctrinesd. Each of the three doctrines is important in its own right20. “ The corporation will not engage in any act of self-dealing as defined in section 4941(d) of the Internal Revenue Code, or the corresponding section of any future tax code.” The above text is most likely from the governing document of what type of organization? a. A 501(c)(3)b. A public charityc. A private foundationd. Both “a” and “c” 21. Which type of public charity prescribes limits on gross investment income and after-tax UBTI? a. 509(a)(1)b. 509(a)(2)c. 509(a)(3)d. 509(a)(4)22. Which type of public charity requires passing a support test? a. 509(a)(1)b. 509(a)(2)c. 509(a)(3)d. 509(a)(4) 23. Which type of public charity incorporates 170(b)(1)(A)(ii) of the Internal Revenue Code? a. 509(a)(1)b. 509(a)(2)c. 509(a)(3)d. 509(a)(4)24. Which type of public charity utilizes the facts-and-circumstances test? a. 509(a)(1)b. 509(a)(2)c. 509(a)(3)d. 509(a)(4) 25. Which type of public charity will most likely plan to treat gross receipts from activities related to its exempt function(s) as “qualifying support”? a. 509(a)(1)b. 509(a)(2)c. 509(a)(3)d. 509(a)(4)26. Which of the following is most likely required to pay an excise tax on its net investment? a. A private foundationb. A public charityc. An exempt operating foundationd. Each of the above organizations must pay an excise tax on its net investment income 27. A 501(c)(3) is absolutely prohibited from participating in: a. Direct lobbyingb. Grass roots lobbyingc. A political campaign on behalf of a candidate for public officed. Each of the above activities28. Pursuant to the holding of the Bob Jones University case discussed in class and in the textbook, 501(c)(3)s must have a policy expressing that the organization will not engage in discrimination based on: a. Raceb. Sexual orientationc. Religiond. Each of the above 29. If a 501(c)(3) never makes a section 501(h) election, it will most likely: a. Not be permitted to engage in any lobbying activities whatsoeverb. Remain subject to the “substantial part of activities” testc. Lose its status as a public charityd. Owe excise taxes based on its actual lobbying expenditures amount30. To satisfy the “organizational test” professionals organizing a 501(c)(3) must often consider: a. State organizational documents and proceduresb. Federal tax requirementsc. The organization’s expected dividend payoutd. Both “a” and “b”