If a nonprofit corporation is ever dissolved, its assets must be
A) divided among the owners.
B) auctioned to the general public.
C) distributed to another tax-exempt organization.
D) divided among the shareholders.
E) consigned to the government.

Question

If a nonprofit corporation is ever dissolved, its assets must be
A) divided among the owners.
B) auctioned to the general public.
C) distributed  to another tax-exempt organization.
D) divided among the shareholders.
E) consigned to the government.

Quizplus · Accepted Answer

When a nonprofit corporation is dissolved, its remaining assets must be distributed to another tax-exempt organization, not to individuals or for-profit entities. This ensures that the assets continue to be used for public or charitable purposes.

If a Nonprofit Corporation Is Ever Dissolved, Its Assets Must