Identify a Disadvantage of an S Corporation

question 98

Multiple Choice

Identify a disadvantage of an S corporation.

• A)Generally,trusts cannot be shareholders.
• B)Losses flow through to the shareholders.
• C)The AMT on corporations is avoided.
• D)Tax-exempt income flows through to the shareholders.
• E)None of the above is a disadvantage of the S election.

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Definitions:

Personal Conversation

A private discussion between individuals about topics of personal interest or concern, often involving sharing of confidential information.

Positive Communication

Communication that is constructive, encouraging, and aimed at building understanding and trust, while minimizing conflict.

Instructions

Detailed information on how to do something or use something.

Interrupting

The act of stopping or hindering a process or conversation, often temporarily.