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:

Legislative Body

A group of individuals with the authority to make laws for a political entity such as a country or city.

Agency Representation

A form of representation in which elected officials serve as agents of their constituents, acting in the constituents' interest rather than their own personal interest.

Pork Barrel

Refers to the allocation of government spending for localized projects secured primarily to bring money to a representative's district.

Senator Term

The period during which an individual serves as a senator, typically six years in the United States Senate, after which they may seek re-election.