Practice question
A nonprofit local placement association invoices employers for recruitment services to recover operating costs. Does the absence of profit alone establish that it receives no recruitment fee?
- Yes, every association is automatically fee-free
- Yes, nonprofits can never charge fees
- Yes, cost recovery is always unrelated to recruitment
- Yes, incorporation replaces the statutory definition
- No
Legal references
- Labor Code, Articles 13 and 29: https://lawphil.net/statutes/presdecs/pd1974/pd_442_1974.html
- DOLE Department Order No. 216-20, Articles II-III and VIII-IX, signed October 27, 2020, printed pages 5-8 and 14-17: https://batangmalaya.ph/wp-content/uploads/2025/11/DOLE-Department-Order-No.-216-Series-of-2020-min-1-with-cover.pdf
Answer this question in flashcards to review your response and continue practicing.