Identify Which of the Following Statements Is True

question 86

Multiple Choice

Identify which of the following statements is true.

• A) A regular corporation has common and preferred stock outstanding on January 1. On January 2, the preferred stock is canceled in a recapitalization, leaving only common stock outstanding. The corporation can make an S election for this tax year.
• B) An S corporation should have a buy- sell agreement to guard itself against an ill- advised sale of its stock.
• C) The terms "small business corporation" and "S corporation" are synonymous.
• D) All of the above are false.

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Definitions:

Effective Leaders

Individuals who possess the ability to inspire and guide others towards achieving shared goals while exhibiting integrity, vision, and communication skills.

Methodical

Describes a systematic, orderly, or organized way of doing something.

Style Flex

The ability to adapt one's fashion or appearance to suit different contexts, environments, or preferences.

Social Relationships

Interactions between individuals that form a network of connections, which can provide social support, friendship, and a sense of belonging.