Which of the Following Business Could Consider S-Corporation Status

question 2

Multiple Choice

Which of the following business could consider S-Corporation status?

• A) A highly profitable personal service company with 125 shareholders.
• B) A business with less than 5 stockholders which expects to distribute profits at the end of the year.
• C) A business which has no more than two non-resident aliens as owners.
• D) A service business with 10 shareholders located in NYC.

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Definitions:

Job Descriptions

A formal document that outlines the duties, responsibilities, required qualifications, and reporting relationships of a specific job.

Division of Labor

The separation of tasks in any economic system or organization so that participants may specialize, increasing efficiency and productivity.

Flatter Span

A management structure with fewer levels of hierarchy and a broader span of control, allowing for more direct communication and less formal supervision.

Decentralization

The distribution of decision-making power and authority from a central figure or location to multiple smaller units or levels within an organizational hierarchy.