Identify Which of the Following Statements Is True

question 47

Multiple Choice

Identify which of the following statements is true.

• A) An S corporation cannot own 100% of the stock of another S corporation.
• B) An S corporation that owns all of the stock of a Qualified Subchapter S Subsidiary (QSub) must report all the income, deductions, and losses of the subsidiary on its own tax return.
• C) An S corporation cannot own any stock of another corporation.
• D) All of the above are true.

---

Definitions:

Long-Run Cost Function

A concept that describes how the total production costs of a firm change based on output levels, considering all inputs as variable in the long term.

Output Supply

The total amount of a good or service that producers are willing and able to sell at a given price over a certain period of time.

Price

The financial expenditure needed to acquire a good or service.

Production Function

A mathematical representation of the relationship between inputs (like labor and capital) and the maximum output possible.