Start learning →

What constraint stops a nonprofit from paying out surplus to owners?

ADividend payout rule
BNon-distribution limit
CTax shield clause
DLiquidity ratio rule
Answer & Solution
Correct answer: B. Non-distribution limit
Under the non-distribution constraint, revenue above expenses must be used to further the organization's purpose.
Practise this question with Quill — CA Final →

Keep practising Balanced Scorecard and Performance Measurement

Browse all Balanced Scorecard and Performance Measurement questions for CA Final, or explore more Cost and Management Accounting topics.

Start a Balanced Scorecard and Performance Measurement lesson →
Related questions