Which of the Following Statements About Stock Ownership Is Not

question 103

Multiple Choice

Which of the following statements about stock ownership is not correct?

• A)A C corporation can own stock of an S corporation.
• B)An S corporation can own stock of a C corporation.
• C)A tax-exempt charity can own stock of an S corporation.
• D)An S corporation can own stock of a Qualified Subchapter S Subsidiary.

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Definitions:

Technology Increase

Refers to advancements or improvements in technology that enhance productivity or efficiency.

Comparative Advantage

The capability of an entity, whether it be a person, company, or nation, to create a good or offer a service more efficiently, in terms of opportunity cost, than competitors.

Opportunity Costs

The value of the best alternative forgone in making any decision.

Production Possibility Frontier

A curve depicting the maximum attainable combinations of two products that may be produced with available resources.