Which of the Following Is Not a Requirement to Make

question 20

Multiple Choice

Which of the following is not a requirement to make an S election?

• A)Maximum 100 shareholders
• B)One class of stock
• C)Shareholders must be U.S.citizens
• D)It must be a domestic corporation

---

Definitions:

Compounded Annually

Involves the process where interest is added to the principal sum at the end of each year, for the purpose of calculating the next year's interest.

Annual Payments

Regular payments made once a year.

Loan

Money that is borrowed, typically from a bank or financial institution, which is expected to be paid back with interest.

Withdrawals

Sums of money taken out from an account, fund, or deposit by the account holder.