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:

Obiter Dictum

A remark or observation made by a judge in a legal decision that is not essential to the ruling and therefore not legally binding.

Nonobstante Veredicto

A legal judgment that overturns the verdict of a jury, also known as "judgment notwithstanding the verdict."

Substantial Evidence Test

A standard used in legal settings to determine if the evidence in support of a conclusion is adequate and meaningful.

Arbitrary and Capricious Test

A standard of review used by courts to assess the decision-making process of an administrative agency, ensuring decisions were made logically and not randomly.