An S Corporation Cannot Have More Than 100 Shareholders

question 21

True/False

An S corporation cannot have more than 100 shareholders.

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Definitions:

Liability

A legal responsibility or obligation, possibly arising from contracts, torts, or statutes.

Negotiable Instrument

A document in writing that assures the payment of a precise sum of money, payable either upon request or at a predetermined time, and includes the name of the individual to whom the money is to be paid.

Enforce

The act of compelling compliance or obedience to a law, rule, agreement, or order.

Negotiable Instruments

Financial documents, such as checks, drafts, or promissory notes, that guarantee the payment of a specified amount of money to a specific person or entity.