The Importance of a Subchapter S Corporation Is

question 8

Multiple Choice

The importance of a Subchapter S corporation is:

• A) its organizational structure.
• B) its treatment of shareholders for income taxation purposes.
• C) its requirement of restrictive transfer rights of the shares.
• D) its small cost of formation.

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Definitions:

Output

The quantity of goods or services produced in a given time period by a company, industry, or country.

Input

Essential elements or factors that are put into a system or process to achieve an output or result, similar to resources used in production.

Derived Demand

The need for a product or service that is generated by the need for a different product or service.

Input Demand

The demand for resources (inputs) that are used in the production of goods and services.