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Which of following problems arise when a for-profit provider is considering the acquisition of a not-for-profit provider? The assets of the not-for-profit must be used
Which of following problems arise when a for-profit provider is considering the acquisition of a not-for-profit provider?
The assets of the not-for-profit must be used for a charitable purpose in perpetuity (charitable trust doctrine). All tax-exempt (municipal) debt issued by the not-for-profit provider must be redeemed.
For-profit managers are not licensed to manage not-for-profit providers.
Problems a. and b. both arise.
Problems a., b., and c. all arise.
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