To Make an S Election Effective as of the Beginning

question 102

True/False

To make an S election effective as of the beginning of the current year, an S corporation must file Form 2553 within 3½ months after the beginning of the year.

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Definitions:

Monopoly Power

The capability of a single entity or company to control or influence the market price or supply of a good or service, limiting competition.

Rule Of Reason

A legal doctrine used in antitrust law to determine if a business practice is lawful based on its pro-competitive versus anti-competitive effects.

Antitrust Laws

Legislation enacted to promote competition and prevent monopolies or unfair business practices that restrict trade.

Competition

The rivalry between businesses or individuals striving for the same customers or market.