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

question 22

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) All of these statements are correct.

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Definitions:

Fresh Eyes

The perspective gained by reviewing a document or problem after a break, often leading to new insights or spotting overlooked errors.

Draft

a preliminary version of a document or plan that is subject to revisions and improvements.

PAIBOC

An acronym for Purpose, Audience, Information, Benefits, Objections, and Context, a framework used to guide effective business communication.

Purpose Statements

Declarations that outline the objectives or goals of an entity, often guiding actions and decision-making processes.