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:

Holder in Due Course

A legal term for a person who has acquired a negotiable instrument in good faith and for value, and thus has certain protections.

Uniform Commercial Code

A comprehensive set of laws that governs commercial transactions in the United States, aiming to standardize and simplify the process across state lines.

Requirements

Needs or conditions that must be met or complied with, often specified in a contract or by a product's design.

Warranty Liability

Liability attributed when the transfer of an instrument breaches a warranty associated with an instrument.