Which of the Following Statements Is Incorrect

question 26

Multiple Choice

Which of the following statements is incorrect?

• A)S corporations must allocate income and expenses to their shareholders based on their proportionate ownership interest.
• B)The number of S corporation shareholders is unlimited.
• C)S corporation income is taxed to shareholders when earned.
• D)S corporation losses can offset shareholder income from other sources.

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Definitions:

Collective

Pertaining to a group or assembly of people acting together for a common purpose or goal.

Groupmind

A concept describing the collective consciousness or shared intelligence of a group, often leading to unified decision-making.

Collective Movements

Organized group actions aimed at achieving a common goal, often related to social, political, or environmental change.

Riots

Violent disturbances by a large group of people, often expressing dissent against perceived injustices or government policies.