If a nonprofit corporation is ever dissolved, its assets must be distributed ____.
A)to the owners
B)at public auction
C)to another tax-exempt organization
D)to the shareholders
E)to the federal government

Question

If a nonprofit corporation is ever dissolved, its assets must be distributed ____. ​
A)to the owners
B)at public auction
C)to another tax-exempt organization
D)to the shareholders
E)to the federal government

Quizplus · Accepted Answer

When a nonprofit corporation is dissolved, its remaining assets must be distributed to another tax-exempt organization, not to private individuals or shareholders, to ensure the assets continue to be used for public or charitable purposes.

If a Nonprofit Corporation Is Ever Dissolved, Its Assets Must