Which of the Following Is True About an S Corporation

question 28

Multiple Choice

Which of the following is true about an S corporation?

• A) It is taxed at both the corporate and shareholder levels.
• B) It may only have 500 or less shareholders.
• C) An S corporation election requires the consent of a majority of its shareholders.
• D) Shareholders of an S corporation may be only individuals or trusts.

---

Definitions:

Extrasensory Perception

The claimed ability to obtain information without the use of known sensory processes or physical interaction.

Sensory Organs

Specialized organs of the body that are designed to receive and process sensory information, such as eyes for vision and ears for hearing.

Weber's Constant

A principle in psychophysics stating that the smallest perceptible change in a stimulus is proportional to the original intensity of the stimulus.

Light

A form of electromagnetic radiation visible to the human eye, responsible for the sense of sight.