Alligood Corporation Has Two Classes of Common Stock Outstanding

question 32

Multiple Choice

Alligood Corporation has two classes of common stock outstanding. The Class A and Class B common stock give the shareholders identical rights and interests in the profits and assets of the corporation. Class A stock has one vote per share. Class B stock is nonvoting. Alligood Corporation may

• A)not make the S election due to different voting rights.
• B)make the S election once the Class B is retired.
• C)make the S election at any time.
• D)not make the S election due to two classes of stock.

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Definitions:

Theory of Planned Behavior

A psychological theory that predicts an individual's intention to engage in a behavior at a specific time and place, considering attitudes, subjective norms, and perceived control.

Research Example

This term refers to a specific case study or instance that illustrates a particular research finding, methodology, or principle.

Promissory Note

A monetary tool that carries a formal commitment from one party to another to pay a specific amount of money, either immediately upon request or at a predetermined future time.

Non-interest-bearing

A financial term describing a debt or loan that does not accrue interest over time.