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.