Is There an Impediment to the Business Qualifying as an S

question 79

Multiple Choice

Is there an impediment to the business qualifying as an S Corporation,based on the information available?

• A)Yes,because a business must operate as a general corporation for at least two years before converting to an S corporation.
• B)Yes,because a business must operate as a partnership for at least two years before converting to an S corporation.
• C)No.
• D)Yes,because there must be at least 100 shareholders involved.
• E)Yes,because at least one-third of the shareholders in an S corporation must be corporations.

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Definitions:

Price Support Programs

Government interventions to maintain the market price of a commodity or product above its equilibrium level to benefit the producers.

Agricultural Products

Agricultural products are commodities produced through farming and agriculture, such as crops, livestock, and other raw goods.

Shortages

A market situation in which the demand for a product exceeds its supply at a particular price.

Farm Price-Support Programs

Government initiatives designed to stabilize or increase prices of agricultural products by buying excess supply, providing subsidies, or setting minimum prices.