To Qualify as an S Corporation, a Company Must

question 255

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 U.S.
• 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:

Erectile Disorder

A medical condition characterized by the consistent inability to maintain an erection sufficient for satisfactory sexual performance.

Affectual Awareness

The capacity to recognize, understand, and process one's own emotions or feelings.

Self-Instruction Training

A treatment developed by Donald Meichenbaum that teaches people to use coping self-statements at times of stress, discomfort, or significant pain. Also called stress inoculation training.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic reactions and anxiety through gradual exposure to the feared object or situation while practicing relaxation techniques.