Which of the Following Requirements Is Not Required by a Corporation

question 47

Multiple Choice

Which of the following requirements is not required by a corporation to qualify for S corporation status?

• A) The corporation must have only one class of stock.
• B) The corporation must file a timely election signed by all the shareholders to be treated as an S corporation.
• C) The corporation must have no more than twenty-five shareholders.
• D) The corporation must be a domestic corporation.

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Definitions:

Independent

Refers to entities or individuals that are self-reliant and not influenced or controlled by others in terms of business operations or decisions.

Marketing Channel

A pathway through which goods and services flow from producers to consumers, involving intermediaries such as wholesalers and retailers.

Profits

The financial gain achieved when the revenues from business activities exceed the expenses, costs, and taxes needed to sustain the operation.

Coercive Power

Threatening or punishing the other channel member for not undertaking certain tasks. Delaying payment for late delivery would be an example.