Identify Which of the Following Statements Is True

question 62

Multiple Choice

Identify which of the following statements is true.

• A)Shareholders who acquire stock in an S corporation after the election date and prior to the election's effective date must consent to the election.
• B)S corporation consent by shareholders is binding on the current tax year and all future tax years.
• C)Only shareholders who own stock on the date an S election takes effect must consent to the election.
• D)All of the above are false.

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Definitions:

Save Bank

A strategy or plan to conserve financial resources or prevent financial collapse.

Laying Anyone Off

The process of terminating employees due to business reasons such as cost-cutting, downsizing, or restructuring, rather than individual performance issues.

Facilitate Style

An approach or method in leadership or management that emphasizes enabling and supporting participants or team members to achieve their goals.

Subordinate Empowerment

The process of delegating power and responsibility to lower-level employees, enhancing their role in decision-making and problem-solving.