Which of the Following Statements Is Correct

question 41

Multiple Choice

Which of the following statements is correct?

• A)An owner of a C corporation is taxed on his or her proportionate share of earnings.
• B)S shareholders are only taxed on distributions.
• C)S shareholders are taxed on their proportionate share of earnings that are distributed.
• D)S shareholders are taxed on their proportionate share of earnings whether or not distributed.

---

Definitions:

Mark

A symbol, sign, or indication used to signify importance or identity.

Urgent

A situation or matter requiring immediate action or attention.

Social Network

Platforms or websites that enable users to create and share content or to participate in social networking, connecting individuals with shared interests or activities.

Primary Reason

The main or most important cause or motive behind an action or situation.