Which of the Following Will Disqualify a Corporation from Electing

question 69

Multiple Choice

Which of the following will disqualify a corporation from electing Subchapter S status?

• A)The election form is signed by 80% of the shareholders.
• B)The corporation has 80 shareholders.
• C)The corporation has one class of stock.
• D)All shareholders are U.S.citizens except for 10% who are resident aliens.

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Definitions:

Pigovian Externality

A situation where a market activity imposes a positive or negative cost or benefit on a third-party that is not reflected in the market price.

Free-Rider Problem

A situation in a shared-resource system where individuals consume more than their fair share or pay less than their fair share of the cost.

Free-Rider Problem

A situation where individuals consume a public good without contributing to its cost, undermining the provision of that good.

Public Goods

are commodities or services that are provided without profit to all members of a society, either by the government or a private individual or organization.