Which of the Following Conditions Will Not Cause an S

question 92

Multiple Choice

Which of the following conditions will not cause an S election to be terminated?

• A)exceeding the 100-shareholder limit
• B)creating a second class of stock having a dividend preference
• C)selecting an improper tax year
• D)failing to file a timely tax return

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Definitions:

Consequential Damages

Indirect and unforeseen damages resulting from a party's actions, not from the direct act but from the result of the act.

Special Damages

Compensatory damages awarded in a lawsuit for specific financial losses directly caused by the defendant's actions.

Real Damages

Economic compensation awarded to an individual for actual losses suffered, quantifiable in monetary terms.

Uniform Electronic Transactions Act

is a law adopted by most U.S. states that establishes legal validity for electronic contracts and signatures, facilitating ecommerce.