Profit from trading arms of charities is used for

• A. The charity's cause rather than kept by the owners
• B. The owners' personal gain
• C. Paying executive bonuses
• D. Expanding privately owned outlets

Answer: (A)

Profits from trading activities run by a charity are reinvested to support the charity’s aims, not kept for private gain. When a charity carries out trading, any surplus belongs to the charity and is used to fund its charitable work, programs, and services. This aligns with the obligation to apply resources to the charity’s public-benefit purposes. The idea of profits going to owners or private expansion conflicts with the nature of a charity, and while salaries or bonuses may be paid, the primary use of the surplus is to advance the charity’s cause.