Which of the Following Is a Requirement of an S-Corporation

question 2

Multiple Choice

Which of the following is a requirement of an S-corporation?

• A)maximum of 100 stockholders
• B)each stockholder must be a U.S.citizen or resident
• C)revenues must be less than $1 million annually
• D)all stockholders must concur with the decision to form the S-corporation

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Definitions:

Accumulated Other Comprehensive Income

Represents the total of all unrealized gains and losses that are not included in net income but affect shareholders' equity.

Economic Situation

The state of the economy at a given time, influenced by factors such as GDP, unemployment rates, and inflation.

Profitability

A measure of the efficiency and financial performance of a business, indicating its ability to generate income relative to revenue, assets, or equity.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee but not control those policies.