Which of the Following Conditions Will Not Cause an S

question 76

Multiple Choice

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

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

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Definitions:

Primary Group

A small social group whose members share close, personal, enduring relationships.

Coterie

An exclusive group or circle of people with a shared interest or purpose, often characterized by a strong sense of unity or loyalty.

Bureaucracy

A large, impersonal organization composed of many clearly defined positions arranged in a hierarchy. A bureaucracy has a permanent, salaried staff of qualified experts and written goals, rules, and procedures. Staff members always try to find ways of running the bureaucracy more efficiently.

Business

Economic activities that involve providing goods or services with the motive of earning profit.