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:

Leibniz

Gottfried Wilhelm Leibniz, a German polymath and philosopher who developed calculus independently of Isaac Newton and proposed the philosophical idea that we live in the best of all possible worlds.

Possible Worlds

A philosophical concept referring to hypothetical scenarios or universes that are different from the actual world in some ways but theoretically could exist.

Ancient Religions

The belief systems and spiritual practices that existed before the emergence of modern religions, deeply rooted in the ancient civilizations across the world.

Believers

Individuals who hold faith or accept the truth of a set of ideas, religious doctrines, or propositions.