Which of the Following Would Terminate a Subchapter S Election

question 9

Multiple Choice

Which of the following would terminate a Subchapter S election?

• A)Estate becomes a shareholder.
• B)Grantor trust becomes a shareholder.
• C)Voting trust becomes a shareholder.
• D)Partnership becomes a shareholder.

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Definitions:

Less Than Optimal

A situation or outcome that does not achieve the best possible or most desired performance level.

Disposition Effect

A phenomenon in behavioral finance where investors are more likely to sell assets that have increased in value, rather than those that have decreased.

Stock Broker

A professional intermediary who buys and sells shares on behalf of clients in exchange for a commission.

Capital Loss

A decrease in the value of an investment or asset compared to its purchase price, realized when the asset is sold.