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:

Time Limits

Predetermined periods within which certain tasks should be completed or conditions met.

Purchase Decision

The stage in the consumer decision-making process where a buyer finalizes their choice and proceeds to acquire a product or service.

Limited Temporary Basis

A situation or condition that is imposed for a short duration with restrictions on scope or extent.

Exchange of Money

The process of exchanging money between individuals as compensation for products or services.