Which of the Following Facts Would Prevent an S Corporation

question 66

Multiple Choice

Which of the following facts would prevent an S Corporation election?
I.Magnificent Corporation has 125 shareholders.
II.Simms Corporation, incorporated in Kansas, has only one class of common stock issued and outstanding.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Poor Timing

The action or decision taken at an inappropriate time, potentially leading to less effective outcomes or failure.

Binding Price Floors

Binding price floors are minimum prices set by the government for certain goods or services that are above the equilibrium price, leading to surpluses.

Sellers

Persons or organizations that provide products or services to buyers or other commercial entities.

Labor Market

The market in which individuals offer their labor to employers in exchange for wages, salaries, or other forms of compensation.