Which of the Following Is True of an S Corporation

question 128

Multiple Choice

Which of the following is true of an S corporation?

• A)It can have no more than 100 shareholders.
• B)Only a foreign corporation can become an S corporation.
• C)It is taxed at the corporate level.
• D)It must be a member of an affiliated group of corporations.

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Definitions:

Marginal Cost

The growth in complete costs incurred by manufacturing an additional unit of a product or service.

Customer Satisfaction

The measure of how products or services meet or exceed customer expectations.

Product Quality

The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.

Repeat Customers

Individuals who make purchases or avail services from the same business or seller on multiple occasions, indicating loyalty or satisfaction.