Which of the Following Is NOT One of the Standards

question 12

Multiple Choice

Which of the following is NOT one of the standards that a business must meet to qualify for status as a subchapter S corporation?

• A) The business must be a subsidiary of another corporation.
• B) All shareholders must agree to have the corporation formed as a subchapter S corporation.
• C) It can have no more than 100 members (husbands and wives count as one member).
• D) It can have only one class of stock issued and outstanding.
• E) The shareholders must be U.S. citizens.

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Definitions:

Mr. Coffee

A brand name of coffee makers developed by North American Systems International in the early 1970s; recognized for popularizing the automatic drip coffee maker.

Appliance Stores

Retail outlets specializing in the sale of electrical or mechanical devices used in the home or for personal care.

Manufacturer's Branch

A local office or division of a manufacturing company responsible for distributing its products in a specific geographical area.

Wholesaling Activities

Encompasses the operations involved in selling goods or merchandise to retailers, other merchants, or industrial, commercial, and institutional users, but not to consumers directly.