Which Corporation Is Eligible to Make the S Election

question 8

Multiple Choice

Which corporation is eligible to make the S election?

• A) Non-U.S. corporation.
• B) One-person limited liability company.
• C) Insurance company.
• D) U.S. bank.
• E) None of these.

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Definitions:

Total Assets Ratio

A financial metric that measures the efficiency of a company's use of its assets to generate revenue.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the financial performance over a given period.

Cash Flow

A rephrased definition for KT-16: The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Net Operating Cash Flow

The amount of cash generated by a company's regular business operations over a specific period.