Which of the Following Is False Regarding Requirements Needed for a Business

question 84

Multiple Choice

Which of the following is false regarding requirements needed for a business to qualify as an S corporation?

• A)Individuals,trusts,partnerships,and in some circumstances corporations can be shareholders.
• B)It must have no more than 100 shareholders.
• C)All S corporations must be domestic corporations.
• D)S corporations can issue only one class of shares,although they need not have identical voting rights.
• E)No shareholder can be a nonresident alien.

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Definitions:

Cystic Fibrosis

A genetic disorder that affects the lungs and digestive system, characterized by the production of thick, sticky mucus that can lead to respiratory and digestive problems.

Diabetes

A group of diseases that affect how the body uses blood glucose, often leading to chronic health issues.

Phenylketonuria

A genetic disorder characterized by the inability of the body to process the amino acid phenylalanine, leading to harmful levels in the blood and brain if untreated.

Mental Retardation

An outdated term now referred to as intellectual disability, characterized by significant limitations in intellectual functioning and adaptive behavior.