Which of the Following Is Not One of the Standards

question 53

Multiple Choice

Which of the following is not one of the standards that a business must meet to qualify for status as a subchapter S corporation?

• A) The business must be a subsidiary of another corporation.
• B) All shareholders must agree to have the corporation formed as a subchapter S corporation.
• C) It can have no more than 100 members (husbands and wives count as one member).
• D) It can have only one class of stock issued and outstanding.
• E) The shareholders must be U.S. citizens.

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Definitions:

Atypical Entrepreneurs

Individuals who start and manage businesses outside of the conventional norms, often introducing innovative methods or products.

Creative Energy

It is the innovative and imaginative power that drives the generation of new ideas, products, or artistic expressions.

Entrepreneurs

Individuals who create, launch, and manage new businesses, often taking on greater than normal financial risks.

Expansion And Growth

Strategic actions taken by a business to increase its size, revenue, or market presence, either through organic growth or acquisitions.