Identify Which of the Following Statements Is True

question 16

Multiple Choice

Identify which of the following statements is true.

• A) Shareholders who acquire stock in an S corporation after the election date and prior to the election's effective date must consent to the election.
• B) Only shareholders who own stock on the date an S election takes effect must consent to the election.
• C) S corporation consent by shareholders is binding on the current tax year and all future tax years.
• D) All of the above are false.

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Definitions:

Third-Party Payments

Payments made by someone other than the direct parties involved in a transaction, often seen in healthcare where insurance companies pay for services on behalf of patients.

Insurance Companies

Financial institutions that provide coverage against specified losses in exchange for premiums, mitigating financial risks for individuals and businesses.

Aging Population

A demographic trend characterized by an increase in the proportion of older individuals within a society, often leading to social, economic, and healthcare challenges.