What Statement Is Correct with Respect to an S Corporation

question 94

Multiple Choice

What statement is correct with respect to an S corporation?

• A) There is no advantage to elect § 1244 stock.
• B) An S corporation can own up to 85% of an insurance company.
• C) A resident alien may be a shareholder.
• D) A voting trust arrangement is not available.
• E) None of the above statements is true.

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Definitions:

Contraction

A physiological process where muscles decrease in length and increase in tension.

Ureters

Tubes that carry urine from the kidneys to the bladder, crucial components of the urinary system.

Kidneys

Organs in the human body that filter waste products from the blood to be excreted as urine.

Urethra

The tube that carries urine from the bladder to be expelled outside the body.