Which Statement Is Incorrect with Respect to an S Shareholder's

question 78

Multiple Choice

Which statement is incorrect with respect to an S shareholder's consent?

• A) Both husband and wife must consent if one owns the stock as community property.
• B) An S election requires a consent from all of the S corporation's shareholders.
• C) A consent must be in writing.
• D) None of the above statements is incorrect.

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Definitions:

Concessions

Concessions are compromises made by a negotiating party, typically involving some degree of self-sacrifice, to reach an agreement.

Interdependent Relationships

Connections between individuals or groups where each party is mutually dependent on the other for success, survival, or well-being.

Potential Consequence

The possible outcomes or effects that may result from a particular action or event.

Conflict

A serious disagreement or argument, typically a prolonged one.