Which Statement Is Incorrect with Respect to an S Shareholder's

question 78

Multiple Choice

Which statement is incorrect with respect to an S shareholder's consent?

• A) Both husband and wife must consent if one owns the stock as community property.
• B) An S election requires a consent from all of the S corporation's shareholders.
• C) A consent must be in writing.
• D) None of the above statements is incorrect.

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Definitions:

External Party

An individual or group outside of an organization that has a stake or interest in the business, such as suppliers, customers, or regulatory bodies.

Significant Factor

An element or aspect that has a major impact on the outcome or understanding of a situation or study.

Internal Or External

Terms used to distinguish between activities, communications, or entities originating within an organization (internal) versus those coming from outside it (external).

Analytical Report

A document that presents detailed analysis and evaluation of a specific issue or problem, often used in business or research.