Which of the Following Statements Is Incorrect

question 26

Multiple Choice

Which of the following statements is incorrect?

• A)S corporations must allocate income and expenses to their shareholders based on their proportionate ownership interest.
• B)The number of S corporation shareholders is unlimited.
• C)S corporation income is taxed to shareholders when earned.
• D)S corporation losses can offset shareholder income from other sources.

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Definitions:

Comparative Negligence

Comparative negligence is a legal doctrine that reduces the amount of damages a plaintiff can recover in a negligence-based claim, based upon the degree to which the plaintiff's own negligence contributed to the cause of their injury.

Assumption of Risk

A legal doctrine stating that an individual knowingly and voluntarily takes on the risks associated with an activity, relieving others of liability for harm that may result.

Take-Home Exposure

Refers to the transmission of hazardous substances from the workplace to an employee's home, potentially exposing family members to health risks.

Kesner v. Superior Court

A legal case that addressed the issue of duty of care in the context of secondary exposure to asbestos.