Which of the Following Is a Requirement to Be an S

question 116

Multiple Choice

Which of the following is a requirement to be an S corporation?

• A)be a domestic or foreign corporation.
• B)have only one class of stock.
• C)have fewer than 75 shareholders.
• D)have at least one corporate shareholder.
• E)none of the choices are correct.

---

Definitions:

Forward Integration

A business strategy where a company extends its operations by moving towards the direct control of its distribution or supply chain further down the production process.

Retailer

A business or person that sells goods to the consumer, as opposed to a wholesaler or supplier.

Retailer-sponsored Cooperative

A group of independent retailers who collectively purchase goods, share marketing efforts, and distribution channels to compete with larger chains effectively.

Service-sponsored Retail System

A retail network established by a service provider to sell or distribute its services directly to consumers.