Which Statement Is Incorrect with Respect to an S Shareholder's

question 24

Multiple Choice

Which statement is incorrect with respect to an S shareholder's consent?

• A) An S election requires a consent from all of the S corporation's 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:

Deaf Ear Syndrome

The tendency to ignore complaints, requests, or pleas, often in a workplace or institutional setting.

Organizations

Groups of people structured in a systematic manner to meet a common goal or set of goals, such as corporations, non-profits, or governments.

Whistle-Blowing

Disclosure of illegitimate practices by a current or former organizational member to some person or organization that may be able to take action to correct these practices.

Traditionally

In a way that conforms to long-established norms, values, or customs.