Identify Which of the Following Statements Is True

question 2

Multiple Choice

Identify which of the following statements is true.

• A)Fringe benefits limited by the more-than-2%-shareholder rule include stock options, group term life insurance premiums, and medical insurance premiums.
• B)A shareholder owning 2% or more of an S corporation's stock, who is also an employee of the corporation, must include all statutory fringe benefits in gross income on his/her individual return.
• C)Section 318 stock attribution rules are used to define 2% or more shareholders of S corporation's stock.
• D)All of the above are false.

---

Definitions:

Internal Locus Of Control

The belief that individuals control their own destiny and outcomes based on their actions and decisions.

Proactive Personality

The disposition that identifies whether or not individuals act to influence their environments.

Career Success

Achieving desired job achievements, which may include promotions, high-level recognition, and personal fulfillment in one's career.

Job Performance

The measure of an employee's effectiveness and efficiency in fulfilling their assigned tasks and responsibilities.