Which of the Following Is Not a Requirement of a Subchapter

question 68

Multiple Choice

Which of the following is not a requirement of a Subchapter S corporation?

• A) It must be a domestic corporation.
• B) It must have no more than 50 shareholders.
• C) A corporation or partnership cannot be a shareholder.
• D) It may have only one class of stock.

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Definitions:

Motor Rotation Tester

A diagnostic tool used to determine the rotational direction of an electric motor to ensure it aligns with operational requirements.

Induction Motor

A type of electric motor that operates on the principle of electromagnetic induction, where electric current is induced in the rotating device without direct contact.

NEMA Standard

A set of guidelines developed by the National Electrical Manufacturers Association that specify standards for various electrical products, ensuring safety, reliability, and efficiency.

IEC Standard

IEC standard refers to the technical standards for electrical, electronic, and related technologies as defined by the International Electrotechnical Commission.