In addition to its No. 1 ranking in cancer care by U.S. News & World Report, MD

Question

In addition to its No. 1 ranking in cancer care by U.S. News & World Report, MD
Anderson Cancer Center ranks first in the number of National Cancer Institute grants.
Being part of The University of Texas System, MD Anderson Cancer Center is managed under a not-for profit structure. Which of the following statement is INCORRECT?

A. As a not-for-profit healthcare enterprise, MD Anderson can sell bonds to raise capital for future expansions but not common stock.

B. As a not-for-profit healthcare enterprise, MD Anderson can only raise equity capital through government grants, charitable contributions and other net assets increases.

C. As a not-for-profit healthcare enterprise, MD Anderson cannot raise equity capital at all.

Explanation / Answer

B. As per the US laws, Non profit organization can't issue stocks at all , they can have government grants, charitable contributions, and other net asset increases.

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