To Become an S-Corporation, All of the Following Must Occur

question 12

Multiple Choice

To become an S-corporation, all of the following must occur except:

• A) Only two classes of stock are allowed.
• B) Shareholders cannot be nonresident aliens.
• C) The company must be a domestic company.
• D) Only individuals and certain trusts may own stock.

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Definitions:

Migration

The movement of people, animals, or particles from one location to another, often driven by environmental factors, social changes, or economic pressures.

Meanders

Naturally occurring bends or curves in a river or waterway, typically resulting from erosion and sediment deposition.

Erode

The process by which natural forces such as water, wind, or ice wear away soil, rock, or other materials from the Earth's surface.

Sea Level

The average height of the ocean's surface between high and low tide, used as a standard in measuring land elevation and ocean depth.