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.

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Definitions:

Tremors

Involuntary, rhythmic muscle movements causing shaking motions in one or more parts of the body.

Antianxiety Drugs

Drugs used to control anxiety and agitation.

Involuntary Movements

Movements that occur without conscious control, often as a result of neurological disorders.

Underlying Problems

Fundamental issues or difficulties that are the root cause of a situation or condition.