Winston Tells Lenita That He Prefers to Form an S

question 77

Multiple Choice

Winston tells Lenita that he prefers to form an S corporation because he does not want to attach "LLC" to the name of the company. Lenita responds that the option of an S corporation is not available for their situation. Is she correct?

• A) Yes, because they do not have the appropriate number of shareholders for an S corporation.
• B) Yes, because all the owners are not U.S. citizens.
• C) Yes, because all the owners are not U.S. citizens and they do not have the appropriate number of shareholders for an S corporation.
• D) No, because the owners of an S corporation are not required to be U.S. citizens.
• E) No, because only one owner need be a U.S. citizenship for purposes of forming an S corporation.

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Definitions:

Fundamentals

The most basic, core, or essential aspects or principles of a subject, concept, or skill.

Liquidation

is the process of bringing a business to an end and distributing its assets to claimants, often occurring when a company is insolvent.

Chronically Unemployed

Individuals who experience long-term unemployment, often due to systemic issues, lack of skills, or significant shifts in the economy, facing difficulties in finding stable work.

White Urban

Referring to the demographic and sociocultural aspects of urban areas predominantly inhabited or characterized by white populations.