Alligood Corporation Has Two Classes of Common Stock Outstanding

question 32

Multiple Choice

Alligood Corporation has two classes of common stock outstanding. The Class A and Class B common stock give the shareholders identical rights and interests in the profits and assets of the corporation. Class A stock has one vote per share. Class B stock is nonvoting. Alligood Corporation may

• A)not make the S election due to different voting rights.
• B)make the S election once the Class B is retired.
• C)make the S election at any time.
• D)not make the S election due to two classes of stock.

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Definitions:

Smooth

A type of involuntary muscle found in various organs, including the stomach, intestines, and blood vessels, controlling their movements and function.

Cardiac

Pertaining to the heart, its structure, function, or diseases.

Multinucleated

Describes cells that contain more than one nucleus, often found in certain muscle fibers and some pathogens.

Spindle Shaped

Describes cells that have tapered ends, commonly seen in smooth muscle cells involved in involuntary movements.