Which of the Following Is Prohibited from Being an S

question 112

Multiple Choice

Which of the following is prohibited from being an S corporation shareholder?

• A) Foreign citizens that are U.S. residents.
• B) U.S. citizens.
• C) Corporations.
• D) 51 unrelated individuals.
• E) None of these.

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Definitions:

Royalties

Payments made to the original creators or owners of intellectual property for the right to use their work.

Franchisor

A business entity that grants the right to use its brand, products, and operational model to an individual or company (franchisee) in exchange for a fee.

Entrepreneurship

The act of creating, managing, and running a business venture in order to earn profit by taking various risks in the corporate world.

Startup

A new business venture in its early stages, typically characterized by innovation, fast growth, and a scalable business model.