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:

Product Differentiation

The process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Total Assets Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue; calculated by dividing sales revenue by total assets.

Sales

The transactions involved in selling goods or services in return for money or other compensation.

Total Assets

The sum of all assets owned by a company, including cash, inventory, property, and equipment, which are reported on the balance sheet.