Which of the Following Facts Would Prevent an S Corporation

question 66

Multiple Choice

Which of the following facts would prevent an S Corporation election?
I.Magnificent Corporation has 125 shareholders.
II.Simms Corporation, incorporated in Kansas, has only one class of common stock issued and outstanding.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Legitimate Power

Authority that is recognized and accepted, derived from a formal position or role within a hierarchy or institutional setting.

Obligation

A duty or commitment that an individual is bound to fulfill, either legally or morally.

Request

An act of politely or formally asking for something.

Foundation Competencies

Essential skills and abilities needed for effective performance in a job or profession.