Which of the Following Is Not a Characteristic of an S

question 66

Multiple Choice

Which of the following is not a characteristic of an S corporation?

• A)Owners have limited liability
• B)The corporation is taxed directly on operating income
• C)The corporation can have no more than 100 shareholders
• D)Shareholders must consent to the original S election by the corporation

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Definitions:

Agents

Individuals or entities authorized to act on behalf of others, typically in financial transactions or negotiations.

Primary Market Transaction

A primary market transaction involves the initial issuance and sale of securities directly from the issuer to investors, as opposed to secondary market trading where investors buy and sell securities among themselves.

Investment Banker

A professional or firm that acts as an intermediary in large and complex financial transactions, such as mergers, acquisitions, and public offerings.

Public Stock Offering

The process by which a company sells its stock to the general public for the first time, known as an initial public offering (IPO).