Which of the Following, If True About the Owners' Plan

question 130

Multiple Choice

Which of the following, if True about the owners' plan for the new business, would weaken the case that it should be registered as an S corporation?

• A) They want the company to be able to change its procedures over time.
• B) They want the company to be able to change its board membership if needed.
• C) They want the company to grow as quickly as they can grow it.
• D) They want the company to be able to issue multiple classes of stock.
• E) They want to pay income taxes via the individual tax returns of the shareholders.

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Definitions:

Temperament

A person's or animal's nature, especially as it permanently affects their behavior, often considered to be innately determined.

PKU

Phenylketonuria, a genetic disorder resulting from the inability to metabolize the amino acid phenylalanine, leading to developmental problems if not treated.

Color-blindness

A deficiency in the way one sees color, making it difficult to distinguish certain shades or colors.

Tongue Curling

The ability to roll or curl the tongue into a U-shape, which is believed to be partly influenced by genetics.