A volunteer fire company is mostlikely organized under Section

1. A volunteer fire company is mostlikely organized under Section:<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

a.501(c)(1)

b.501(c)(3)

c.501(c)(4)

d.501(c)(7)

2. An organization that promotes itsmembers’ common business interests is

most likely organized under Section:

a.501(c)(2)

b.501(c)(5)

c.501(c)(6)

d.501(c)(9)

3. An association of workers who havecombined to protect and promote the

interests of its members by bargainingcollectively is most likely organized under Section:

a.501(c)(2)

b.501(c)(5)

c.501(c)(6)

d.501(c)(9)

4. A contribution to an organization organizedunder this Section has the best

odds of being deducted as a charitablecontribution:

a.501(c)(3)

b.501(c)(4)

c.501(c)(5)

d.501(c)(6)

5. An organization organized under thisSection has the best odds of NOT being

subject to the tax on unrelatedbusiness income:

a.501(c)(4)

b.501(c)(3)

c.501(c)(2)

d.501(c)(1)

6. Generally, a 501(c)(4) organizationmust:

a.Provide benefit to a community

b.Benefit every member of a community

c.Provide equal benefits to members of the community

d.All of the above

7. Net earnings of a 501(c)(5)organization may NOT benefit any:

a.Private shareholder or individual

b.Non-resident

c.Member

d.Both “a” and “b”

8. Net earnings of a 501(c)(6)organization may NOT benefit any:

a.Private shareholder or individual

b.Non-resident

c.Member

d.Both “a” and “b”

9. Which of the following activities isLEAST likely to be EXCLUDED from the

definition of unrelated trade orbusiness?

a.A trade or business in which substantially all the work is performed for the

organizationwithout compensation

b.A bingo game that is legal where it is played (and played in a jurisdiction

wherebingo games are not regularly carried on by for-profits)

c.Payments for advertising that strongly endorses sponsor’s products

d.A trade or business carried on by a university primarily for the convenience of

itsstudents

10. Which payment (by Big Bank to BigUniversity) is MOST likely to be

considered a qualified sponsorshippayment?

a.A payment whereby Big University agrees to show Big Bank’s logo at certain

BigUniversity’s athletic events

b.A payment whereby Big University agrees to broadcast messages containing

qualitativelanguage and price information about Big Bank’s products and services

c.A payment whereby Big University agrees to endorse Big Bank’s products and

services

d.None of the above payments could be a qualified sponsorship payment