Which of the Following Is Not a Requirement for Qualification

question 63

Multiple Choice

Which of the following is not a requirement for qualification as an S corporation?

• A)The corporation must be a domestic corporation.
• B)The corporation must have 25 or fewer shareholders.
• C)The corporation must have only one class of stock outstanding.
• D)The shareholders of the corporation must not be nonresident aliens.
• E)None of these.

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Definitions:

Sharpe Measure

A formula used to calculate the adjusted return of an investment by considering its risk, allowing for comparison against risk-free assets.

Standard Deviation

A measure of the dispersion of a set of data from its mean, indicating how much variation exists from the average.

Beta

A measurement of the volatility of a security or a portfolio in comparison to the market as a whole, used as a measure of systematic risk.

Treynor Measure

A performance metric for determining how well an investment compensates the investor for taking risk, comparing returns above the risk-free rate to the investment's market risk.