The S Corporation Is Likely to Be Less Popular in the Future

question 292

Multiple Choice

The S corporation is likely to be less popular in the future because

• A) Congress repealed the limited liability protection of S corporations and limited them to companies with earnings of less than $3 million per year.
• B) limited liability companies, which do not have the restrictive eligibility requirements of S corporations and offer greater flexibility in the choice of tax treatment, are now legal in all 50 states.
• C) many states significantly increased the annual fee that S corporations must pay to maintain their tax status, thus eliminating the financial advantages of this form of ownership.
• D) S corporations have been made illegal in several states as a reaction to widespread abuse of the special benefits available to this type of business.

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Definitions:

Human Growth Hormones

Peptide hormones secreted by the pituitary gland that stimulate growth, cell reproduction, and cell regeneration in humans and other animals.

Self-Esteem

An individual's overall subjective emotional evaluation of their own worth or value.

TCA Imipramine

A tricyclic antidepressant used to treat major depression and enuresis (bedwetting), acting by inhibiting the reuptake of neurotransmitters.

Antidepressant

A medication or other form of treatment designed to alleviate symptoms of depression by influencing neurotransmitter levels.