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C Corporations Can Elect Fiscal Years That Are Different from Those

question 90

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C corporations can elect fiscal years that are different from those of their shareholders,but personal service corporations (PSCs)are subject to substantial restrictions in the choice of a fiscal year.Why are the fiscal year choices of PSCs limited?


Definitions:

Market Competition

The rivalry among companies selling similar products and services with the goal of achieving revenue, profit, and market share growth.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 aimed at protecting investors from fraudulent accounting activities by corporations.

Top Executives

Senior-level managers and officers in an organization who are responsible for overseeing its strategic direction and making high-level decisions.

Clan Control

A method of managing based on shared values, beliefs, norms, and traditions among company members, which influences members' behaviors and contributes to organizational culture.

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