Which of the Following Statements Regarding S Corporations Is True

question 14

Multiple Choice

Which of the following statements regarding S corporations is true?

• A) An S corporation may have no more than 50 shareholders.
• B) Any individual, estate, corporation, or trust may be an S corporation shareholder.
• C) An S corporation may have only one class of stock.
• D) An S corporation shareholder's allocable share of ordinary income is subject to self-employment tax.

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Definitions:

Skipping School

The action of not attending school without a valid reason, typically considered as truancy.

Analytical Intelligence

One of three facets of Robert J. Sternberg's triarchic theory of intelligence, focusing on the ability to analyze, evaluate, judge, compare, and contrast.

Metacognition

An awareness and understanding of one’s own thought processes, often referred to as "thinking about thinking."

Problem Solving

The process of identifying solutions to difficult or complex issues through analytical thought, creativity, and logical reasoning.