Identify Which of the Following Statements Is True

question 60

Multiple Choice

Identify which of the following statements is true.

• A)An S corporation should have a buy-sell agreement to guard itself against an ill-advised sale of its stock.
• B)The terms "small business corporation" and "S corporation" are synonymous.
• C)A regular corporation has common and preferred stock outstanding on January 1. On January 2, the preferred stock is canceled in a recapitalization, leaving only common stock outstanding. The corporation can make an S election for this tax year.
• D)All of the above are false.

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Definitions:

Clear Liquid Diet

A temporary diet that consists only of clear liquids like water, broth, and clear juices, often recommended before certain medical procedures or tests.

Flavored Gelatin

A food product made by combining gelatin with flavors and sweeteners, often used in desserts and sweets.

Trace

Trace often refers to a very small amount or indication of something that is hardly noticeable or is present in minimal concentrations.

Carbohydrates

Organic compounds, including sugars, starch, and cellulose, which are an important source of energy for the body; found in a variety of foods.