Which Statement Is False

question 146

Multiple Choice

Which statement is false?

• A) S corporation status provides many of the benefits of partnership treatment.
• B) S corporation shareholders have limited liability.
• C) Distributions of appreciated assets are not taxable in an S corporation.
• D) The personal holding company tax does not apply to an S corporation.
• E) None of the above.

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Definitions:

Strategy/Environment Fit

The alignment between a company's strategies and its external environment to ensure effectiveness.

Long-Term Earnings Growth

A measure of a company's ability to increase its earnings over a prolonged period, often considered a key indicator of financial health and future potential.

Milton Friedman

An American economist and Nobel laureate who is best known for his strong belief in free-market capitalism and the minimal role of government in the economy.

Adam Smith

A Scottish economist and philosopher, best known for his influential works on capitalism and the concept of the "invisible hand" guiding economic markets.