Which Equity Arrangement Cannot Be Used by an S Corporation

question 11

Multiple Choice

Which equity arrangement cannot be used by an S corporation?

• A)Phantom stock.
• B)Stock appreciation rights.
• C)Warrants.
• D)Straight debt.
• E)An insurance company structure.

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Definitions:

Intermediate

Positioned between two extremes or in the middle of a range, often referring to a level of skill, difficulty, or complexity that is not basic but not advanced either.

Impersonal

Lacking personal interest, attachment, or warmth; not relating to or influenced by personal feelings.

Sustained Attention

The ability to maintain attention to a selected stimulus for a prolonged period of time.

Selected Stimulus

A specific environmental event or condition selected by a researcher to observe its effects on the behavior of an organism.