Which of the Following Would Terminate a Subchapter S Election

question 9

Multiple Choice

Which of the following would terminate a Subchapter S election?

• A)Estate becomes a shareholder.
• B)Grantor trust becomes a shareholder.
• C)Voting trust becomes a shareholder.
• D)Partnership becomes a shareholder.

---

Definitions:

Expected Inflation

Expected inflation is the anticipated rate at which the general level of prices for goods and services will rise over a period, eroding purchasing power.

Interest Rates

The percentage charged or paid for the use of money, typically expressed on an annual basis, affecting loans, savings, and investments.

Unlimited Liability

A legal structure where business owners are personally responsible for all of the company's debts and liabilities.

Partnership Interests

Shares of ownership in a partnership, entitling the partners to a portion of the partnership's profits and losses.