You have recently discovered that a local business has been designated 501(c)(3). Which of the following must be true?

Question

You have recently discovered that a local business has been designated 501(c)(3). Which of the following must be true?
A) The business is a public charity. 
B) The Business as a private foundation. 
C) The business has federal tax exemptions. 
D) The business does not earn profits.

GPT 3.5 · Answer

C) The business has federal tax exemptions.