Which of the Following Characteristics Can Disqualify a Corporation from S

question 38

Multiple Choice

Which of the following characteristics can disqualify a corporation from S Corporation status?

• A)A corporation has nonresident aliens as shareholders.
• B)One of the corporation's shareholders is an estate.
• C)A corporation has 101 shareholders including a husband and wife.
• D)A corporation has voting and nonvoting stock,but both types of stock confer identical rights to distribution and liquidation proceeds.

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Definitions:

Political Activity

Participation in any action aimed at influencing government policy or decisions, ranging from voting and lobbying to activism and public demonstration.

State Collective Bargaining Laws

Legislation at the state level that governs collective bargaining rights and processes for public and private sector employees.

Strikes

A work stoppage caused by the mass refusal of employees to work, typically aiming to enforce demands regarding employment conditions.

Property Rights

The legal rights to use, control, and dispose of property, whether personal or real estate.