To Qualify as an S Corporation, a Company Must

question 63

Multiple Choice

To qualify as an S corporation, a company must

• A) have no more than 50 shareholders.
• B) have shareholders who are individuals or estates and qualify as permanent residents of the United States.
• C) have a different class of stock for each owner.
• D) have not more than 5 percent of income derived from passive sources.

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Definitions:

Segregation

The enforced separation of different racial groups within a country, community, or institution.

Immigrant Status

Refers to the legal condition or position held by an immigrant in a host country, determining their rights, obligations, and eligibility for citizenship or residency.

Foreign Nationals

Individuals who are citizens of a country other than the one in which they are currently living or visiting.