Although It Is a Small Company,Zorn Enterprises Owns a Large

question 224

Multiple Choice

Although it is a small company,Zorn Enterprises owns a large number of inexpensive rental housing units in Texas and Louisian A.Currently,the company is a chartered C-corporation,but the owners are interested in switching to an S corporation.After consulting a lawyer,they learned that Zorn Enterprises does not qualify to be designated as an S corporation.Which of the following characteristics of Zorn Enterprises would prevent it from becoming an S corporation?

• A)The firm has fewer than 75 stockholders.
• B)The firm is chartered in one state,but owns property in another.
• C)The firm has only one class of stock,all owned by U.S.citizens.
• D)The firm receives more than 70 percent of its income from rents and other passive sources.

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Definitions:

Self-Regulatory Strategies

Techniques or approaches used by individuals to control and direct their thoughts, emotions, and actions towards achieving personal goals.

Empathic Sensitivity

The capacity to understand and respond to the feelings and emotional states of others.

Emotional Experience

The complex psychological state involving an individual's subjective feelings, physiological arousal, and expressive behaviors.

Adaptive

Having the ability to adjust effectively to new conditions or environments; capable of or contributing to adaptation.