Which of the Following Statements About S Corporations Is True

question 41

Multiple Choice

Which of the following statements about S corporations is true?

• A) An S corporation has unlimited liability.
• B) An S corporation is a flow-through entity for federal income tax purposes.
• C) S corporations can only have 75 shareholders.
• D) S corporations can have several classes of stock.

---

Definitions:

Contributions

Inputs or additions made by an individual or group towards achieving a goal or completing a project.

Organisation

A systematic arrangement of people and resources managed to achieve a shared goal or set of goals within a certain context.

Global Marketplace

The international economic environment in which businesses operate, characterized by interconnected markets, global competition, and cross-border trade.

Conditions

Specific circumstances or factors that affect a situation, process, or environment.