Which of the Following Is False Regarding Requirements Needed for a Business

question 70

Multiple Choice

Which of the following is false regarding requirements needed for a business to qualify as an S corporation?

• A) It must have no more than 100 shareholders.
• B) Individuals, trusts, partnerships, and in some circumstances corporations can be shareholders.
• C) All S corporations must be domestic corporations.
• D) No shareholder can be a nonresident alien.
• E) S corporations can issue only one class of shares, although they need not have identical voting rights.

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Definitions:

Creative Behaviour

Actions that result in new or innovative ideas, solutions, or outcomes.

Complex Innovations

Innovations characterized by multiple interdependent components that require coordinated implementation across different parts of an organization or society.

Diffuse

To spread or scatter over a wide area or among a large number of people.

Complex Innovations

Complex Innovations are advancements or creations that involve intricate processes, technologies, or ideas, often requiring interdisciplinary knowledge and collaboration.