Which of the Following Is an Incorrect Statement Regarding Subchapter

question 33

Multiple Choice

Which of the following is an incorrect statement regarding Subchapter S corporations?

• A) they may issue only one class of stock
• B) they may be domestic or foreign but cannot be alien
• C) taxation is pass-through similar to partnership taxation
• D) they may not have more than 100 shareholders

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Definitions:

K-selected

Characterizes species that produce fewer offspring, with a larger investment in each, typically adapting to stable environments where competition is strong.

Biotic Potential

An organism’s greatest capability to reproduce in the best possible environmental circumstances.

Environmental Resistance

Factors in the environment that limit the growth, abundance, or distribution of organisms or populations within an ecosystem.

Pathogens

Microorganisms that cause disease in their hosts, including bacteria, viruses, fungi, and parasites.