Florida Chiropractic Laws and Rules (FCLR) Practice Exam

Which entity is typically exempt from federal taxation and may interact with chiropractic practices?

1. Publicly traded corporations

2. Non-profit organizations

3. State licensed insurers

4. Real estate investment trusts

The correct answer is: State licensed insurers

The most appropriate choice regarding an entity typically exempt from federal taxation that may interact with chiropractic practices is non-profit organizations. Non-profit organizations are structured to serve specific community needs or interests rather than to generate profit, and many receive tax-exempt status under Internal Revenue Code Section 501(c)(3) or similar provisions. Chiropractic practices often collaborate with non-profits in various capacities, such as providing community health services or education about wellness and preventive care. Non-profits may employ or contract with chiropractors, engage in awareness campaigns, or even provide funding for health-related initiatives, making these organizations significant partners in the health and wellness ecosystem. While state licensed insurers play a crucial role in the healthcare industry, they do not generally hold federal tax-exempt status like non-profits do. Publicly traded corporations and real estate investment trusts also do not fall into the category of entities exempt from federal taxation in the same manner as non-profits. Hence, the interaction with chiropractic practices would typically be seen in the context of non-profits rather than the other choices listed.