Which Statement Is Incorrect with Respect to an S Shareholder's

question 12

Multiple Choice

Which statement is incorrect with respect to an S shareholder's consent?

• A)An S election requires a consent from all corporate shareholders.
• B)Both husband and wife must consent if one owns the stock as community property.
• C)A consent extension is available only if Form 2553 is filed on a timely basis, reasonable cause is given, and the interests of the government are not jeopardized.
• D)A consent must be in writing.
• E)None of the above statements is incorrect.

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Definitions:

Price

A value placed on an object exchanged between a buyer and a seller.