Identify Which of the Following Statements Is True

question 60

Multiple Choice

Identify which of the following statements is true.

• A)An S corporation should have a buy-sell agreement to guard itself against an ill-advised sale of its stock.
• B)The terms "small business corporation" and "S corporation" are synonymous.
• C)A regular corporation has common and preferred stock outstanding on January 1. On January 2, the preferred stock is canceled in a recapitalization, leaving only common stock outstanding. The corporation can make an S election for this tax year.
• D)All of the above are false.

---

Definitions:

RES Instruction

A command in programming languages that resets a specific variable, counter, or bit to its default state.

Reset To Zero

The action of setting a numerical value or count back to zero in systems, circuits, or software applications.

CTD

Stands for Countdown Timer Delay, often used in electronics and programming to introduce a delay before an action is executed.

Count-Down Counter

A Count-Down Counter is a digital device or mechanism that counts down from a specified number to zero, often used in timing or as part of control systems.