Which of the Following Is True of S Corporations

question 33

Multiple Choice

Which of the following is true of S corporations?

• A)They are taxed twice.
• B)They are very easy to form and operate.
• C)They do not have any restrictions on the number of shareholders.
• D)Their shareholders have unlimited liability.
• E)Their shareholders can shift income and appreciation to others.

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Definitions:

Invested Assets

Assets that have been allocated to investments, such as stocks, bonds, or real estate, with the expectation of earning a return.

Minimum Acceptable

The lowest or least satisfactory condition or performance level that is considered adequate or permissible.

Income From Operations

This is a measure of the profit made from a business's core operations, excluding revenues and expenses from non-operational activities.

Invested Assets

Funds or resources that have been allocated into various types of investments, such as stocks, bonds, or real estate, with the expectation of generating income or profit.