Identify Which of the Following Statements Is True

question 60

Multiple Choice

Identify which of the following statements is true.

• A)An S corporation should have a buy-sell agreement to guard itself against an ill-advised sale of its stock.
• B)The terms "small business corporation" and "S corporation" are synonymous.
• C)A regular corporation has common and preferred stock outstanding on January 1. On January 2, the preferred stock is canceled in a recapitalization, leaving only common stock outstanding. The corporation can make an S election for this tax year.
• D)All of the above are false.

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Definitions:

Coercive Appeal

A marketing or persuasive strategy that uses pressure, threats, or intimidation to encourage action or compliance.

Competitors' Offerings

The range of products or services provided by rival companies in the market, which may influence a business's strategic decisions and positioning.

Ripped Abdominal

Muscular definition in the abdominal area, indicating low body fat and well-developed core muscles.

Sex Appeal

The use of sexually suggestive images or features to attract attention to a product or brand.