A New S Corporation Shareholder Can Revoke the S Election

question 97

Multiple Choice

A new S corporation shareholder can revoke the S election unilaterally, if he/she owns how much of the existing S corporation's stock?

• A) More than 50%.
• B) 50% or more.
• C) The election can be revoked only if all of the shareholders consent.
• D) The election cannot be revoked during the first year of the new shareholder's ownership.

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Definitions:

Enumerated Power

Specific powers granted to the federal government by the Constitution.

Interstate Commerce

Economic, commercial, or transportation activities that cross state boundaries or involve more than one state, subject to federal regulation.

Equal Protection

A constitutional principle in the Fourteenth Amendment of the U.S. Constitution that requires states to apply the law equally and not discriminate against individuals or groups.

Executive Power

The authority granted to government executives, such as presidents or governors, to enforce laws and manage the administration of government.