Which of the Following Is Not Considered a Family Member

question 50

Multiple Choice

Which of the following is not considered a family member for purposes of the S corporation shareholder limit test?

• A) brother.
• B) great-grandparent.
• C) grandchildren.
• D) grandparent.
• E) none of the choices are correct.

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Definitions:

Insider Trading

The illegal buying or selling of a corporation’s stock or other securities by corporate insiders, such as officers and directors, in breach of a fiduciary duty or some other relationship of trust and confidence, while in possession of material, nonpublic information about the security.

Material Inside Information

Refers to non-public, important information about a company that could influence an investor's decision to buy or sell the company's securities.

Corporate Disclosure Requirements

Regulations mandating that corporations publicly disclose certain financial and business information to maintain transparency with shareholders and the public.

Sarbanes-Oxley Act

A law enacted in response to a number of major corporate and accounting scandals to protect shareholders and the general public from accounting errors and fraudulent practices in enterprises.