What Statement Is Correct with Respect to an S Corporation

question 94

Multiple Choice

What statement is correct with respect to an S corporation?

• A) There is no advantage to elect § 1244 stock.
• B) An S corporation can own up to 85% of an insurance company.
• C) A resident alien may be a shareholder.
• D) A voting trust arrangement is not available.
• E) None of the above statements is true.

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Definitions:

Sigmund Freud

An Austrian neurologist known for founding psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow that outlines a five-tier model of human needs, from basic physiological needs to self-actualization.

Self-actualization

The achievement of realizing one's capabilities and talents, seen as an innate drive or necessity in all individuals.