Identify a Disadvantage of Being an S Corporation

question 32

Multiple Choice

Identify a disadvantage of being an S corporation.

• A)Estates can be shareholders.
• B)Losses flow through immediately to the shareholders.
• C)The AMT on corporations is avoided.
• D)Tax-exempt income flows through as excludible to shareholders.
• E)None of the above is a disadvantage of the S election.

---

Definitions:

Individualistic

Characterized by independence and self-reliance, with an emphasis on personal freedom and achievement.

Social Relationships

Social relationships refer to connections between individuals based on kinship, affection, or other forms of social commitment, which influence behavior and social structure.

Musical Performance

The act of presenting music through singing, playing instruments, or conducting, often evaluated on its artistic merit.

Self-Concept

An individual's perception of themselves, encompassing beliefs, feelings, and thoughts regarding one's abilities and attributes.