Which of the Following Statements Is Incorrect

question 26

Multiple Choice

Which of the following statements is incorrect?

• A)S corporations must allocate income and expenses to their shareholders based on their proportionate ownership interest.
• B)The number of S corporation shareholders is unlimited.
• C)S corporation income is taxed to shareholders when earned.
• D)S corporation losses can offset shareholder income from other sources.

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Definitions:

Structure And Strategy

Refers to the organizational framework and the planned approach used by an entity to achieve its long-term goals.

Individual Resistance

The opposition or pushback by people within an organization towards changes affecting their routines or beliefs.

Personality

The combination of characteristics or qualities that form an individual's distinctive character.

Organization Design

The process of structuring an organization's roles, responsibilities, and systems to effectively achieve its goals.