Identify Which of the Following Statements Is True

question 87

Multiple Choice

Identify which of the following statements is true.

• A)The S corporation rules were enacted to allow small corporations to enjoy the nontax advantages of the corporate form of business without being subject to the tax disadvantage of double taxation.
• B)A partnership can elect to be taxed as a corporation under the check-the-box regulations. As a corporation, an S election can be made.
• C)For C corporations that desire to be taxed like a partnership, the S corporation rules provide a practical alternative for an existing C corporation to obtain many of the tax benefits of being taxed as a partnership.
• D)All of the above are true.

---

Definitions:

State Supreme Courts

The highest judicial courts in U.S. states, responsible for reviewing decisions of lower courts and interpreting state law and constitutions.

Governing Attorneys

Regulatory guidelines and bodies that oversee the conduct, licensing, and discipline of lawyers to ensure ethical and professional standards are maintained.

Paralegal

A legal assistant who performs various tasks such as research and document preparation under the supervision of an attorney.

The Attorney

A licensed professional authorized to practice law, representing and advising clients in legal matters.