Which of the Following Facts Would Prevent an S Corporation

question 66

Multiple Choice

Which of the following facts would prevent an S Corporation election?
I.Magnificent Corporation has 125 shareholders.
II.Simms Corporation, incorporated in Kansas, has only one class of common stock issued and outstanding.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Wagner Act

The National Labor Relations Act of 1935, which established the legal right for employees to participate in unions and engage in collective bargaining in the United States.

Bargaining Process

The negotiation between employers and a group of employees aimed at reaching agreements to regulate working salaries, working conditions, and other aspects of workers' compensation and rights.

Management

The process of planning, organizing, directing, and controlling the operations of a business or organization to achieve its objectives.

Wagner Act

Also known as the National Labor Relations Act of 1935, it is a foundational statute of US labor law which guarantees basic rights of private sector employees to organize into trade unions, engage in collective bargaining, and take collective action such as strikes.