S Status Can Be Elected If 50% of All Shareholders

question 36

True/False

S status can be elected if 50% of all shareholders consent to the S corporation election on the date of the S corporation election.

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Definitions:

Factory System

An organizational method for manufacturing that involves workers and machinery in one location to produce goods on a large scale.

Guaranteed Profit

A commitment or assurance, often not feasible, that an investment will yield a positive return.

Reduced Competition

A market condition where there are fewer rivals competing for customers, often leading to increased prices and reduced innovation.