Which of the Following Statements About Stock Ownership Is Not

question 103

Multiple Choice

Which of the following statements about stock ownership is not correct?

• A)A C corporation can own stock of an S corporation.
• B)An S corporation can own stock of a C corporation.
• C)A tax-exempt charity can own stock of an S corporation.
• D)An S corporation can own stock of a Qualified Subchapter S Subsidiary.

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Definitions:

Centrally Planned

An economic system where major decisions regarding production, distribution, and investment are made by the government or a central authority.

Socialist Economy

An economic system in which the means of production, distribution, and exchange are owned or regulated by the community as a whole, with an aim toward equitable distribution of wealth and resources.

Norway

A Nordic country in Northern Europe known for its advanced economy, high quality of life, and robust welfare system.

John Kenneth Galbraith

A Canadian-American economist, public official, and diplomat known for his works on consumer behavior, organizational theory, and public policy.