Which of the Following Would Not Result in an S

question 19

Multiple Choice

Which of the following would not result in an S election termination?

• A) Having 120 unrelated shareholders.
• B) Having a corporation as a shareholder.
• C) Issuing a second class of stock.
• D) Having excess passive investment income for two consecutive years.
• E) None of these.

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Definitions:

Core Competencies

Unique strengths and abilities that a company or an individual possesses which distinguish them from competitors.

Operating Efficiencies

The ratio of productive output to operational inputs, reflecting the effectiveness and economy with which resources are utilized in production.

Multidomestic Strategy

A business strategy where a company adapts its products, marketing, and operations to suit specific local markets in each country it operates.

Customizes Products

The act of modifying products to meet the preferences or requirements of different customers.