Which of the Following Statements Is True Regarding Subchapter S

question 104

Multiple Choice

Which of the following statements is true regarding Subchapter S firms?

• A)These firms are liable to pay federal income taxes.
• B)These firms cannot have more than 100 shareholders.
• C)These firms need to pass-through at least half of their earnings to their shareholders.
• D)Income from these firms is tax-exempt for its shareholders.
• E)All of the options are true for Subchapter S firms.

---

Definitions:

Muscle Contractions

The process where muscle fibers shorten or lengthen to produce movement or maintain the position of parts of the body.

Polarized Light

Light waves that vibrate in a single plane, which can be used by some animals for navigation.

Monarch Butterflies

Migratory insects known for their distinct orange-and-black wing patterns and remarkable mass migration behavior.

UV Light

Ultraviolet light, a type of electromagnetic radiation with a wavelength shorter than that of visible light but longer than X-rays.