Identify a Disadvantage of Being an S Corporation

question 4

Multiple Choice

Identify a disadvantage of being an S corporation.

• A)Generally, trusts cannot be shareholders.
• B)Losses flow through to the shareholders.
• C)The AMT on corporations is avoided.
• D)Tax-exempt income flows through to the shareholders.
• E)None of the above is a disadvantage of the S election.

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Definitions:

Behavior Being Observed

The act of monitoring actions or responses in a systematic way for the purpose of data collection or analysis.

Clinical Interpretation

The process of understanding and giving meaning to clinical data or findings to inform healthcare decisions.

Subjective

relates to personal opinions, interpretations, or feelings rather than facts.

Halo Effect

A cognitive bias where an observer's overall impression of a person, company, brand, or product influences the observer's feelings and thoughts about that entity's character or properties.