Corporations Cannot Be Shareholders in an S Corporation

question 49

True/False

Corporations cannot be shareholders in an S corporation.

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Definitions:

Variable Cost

Costs that change in proportion to the level of goods or services that a business produces.

Breakeven Volume

The quantity of products sold or services rendered at which total revenues equal total costs, resulting in no net loss or gain.

Sales Revenues

The income earned by a company from its sales of goods or the provision of services before any costs or expenses are deducted.

Operating Income

Operating income, also known as operating profit or Earnings Before Interest and Taxes (EBIT), is a measure of the profit a company generates from its operations, before subtracting interest expenses and taxes.