Which of the Following Is Not a Requirement to Make

question 20

Multiple Choice

Which of the following is not a requirement to make an S election?

• A)Maximum 100 shareholders
• B)One class of stock
• C)Shareholders must be U.S.citizens
• D)It must be a domestic corporation

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Definitions:

Customized Goods

Products that are specifically made according to the specifications or requirements of a customer.

Partial-Performance Exception

A legal principle that allows for the enforcement of an oral contract when one party has taken significant action based on the agreement, despite the lack of a written contract.

Merger Clauses

Provisions in a contract stating that the written document represents the entire agreement between the parties, negating any oral agreements.

Parol Evidence

The rule that prohibits the use of oral statements or agreements to contradict or vary the terms of a written contract.