Which Statement Is Incorrect About an S Corporation

question 154

Multiple Choice

Which statement is incorrect about an S corporation?

• A)Nonresident aliens cannot own S corporation stock.
• B)A one-person LLC can be an S shareholder.
• C)A partnership can own S corporation stock.
• D)An S corporation can be a partner in a partnership.
• E)None of the above statements is incorrect.

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Definitions:

Refined Grains

Processed grains that have had the germ and bran removed, which lowers their fiber content and nutritional value.

Non-breaching Party

In a contractual agreement, the party that has not failed to fulfill their contractual obligations and has been wronged by the other party's breach.

Reasonable

The term 'reasonable' is used to describe actions or decisions that are logical, fair, and sensible, based on the circumstances.

UCC Rule

Refers to regulations established under the Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States.