A hospital offers several outreach and educational programs which positively imp

Question

A hospital offers several outreach and educational programs which positively impact the community in which it serves. Which of the following is not a reason why it would be in the organization’s best interest to chronicle each initiative, quantifying community impact where possible?

Community benefit reporting

Tax exempt status justification

Justification of payment in lieu of tax levels

To justify management compensation

Community benefit reporting

Tax exempt status justification

Justification of payment in lieu of tax levels

To justify management compensation

Explanation / Answer

According to me, as the hospital is positively impacting the community, it would not be in the best interest of itself to have community benefit reporting. It is visible and evident in the area it serves. Hence, it should be - Community benefit reporting.

However, other two alternatives or reasons (Tax exempt status justification and Justification of payment in lieu of tax levels) can be required to explain or justify the companies stand to tax personnel or government authorities as well as auditors.

And, to attract the best management professionals to do great jobs, organization shall require to justify management compensation to its internal stakeholders.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.