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

question 44

Multiple Choice

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

• A)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.
• B)Both husband and wife must consent if one owns the stock as community property.
• C)An S election requires a consent from all of the S corporation's shareholders.
• D)A consent must be in writing.
• E)None of the above statements is incorrect.

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Definitions:

Physical Development

The progression of bodily growth and the improvement of motor skills and physical health over a person's lifetime.

Endocrine System

A network of glands in the body that produces and releases hormones directly into the bloodstream to regulate various bodily functions.

Hormones

Chemical messengers produced by the endocrine glands that regulate various bodily functions and processes.

Glands

Organs in the body that secrete hormones or other substances directly into the blood or onto a surface within or outside of the body.