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:

Communal-Sharing Relationships

Bonds characterized by a sense of belonging and mutual care, where resources are shared collectively.

Research Findings

The conclusions or outcomes derived from systematically conducted investigations or studies.

Trustors

Individuals or entities that place trust in others, typically within the context of a relationship or transaction.

Trustees

Individuals or organizations entrusted with the responsibility of managing assets or interests on behalf of others.