A Corporation Must Have More Than 100 Stockholders to Qualify

question 95

True/False

A corporation must have more than 100 stockholders to qualify for Subchapter S designation.

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Definitions:

Extends Credit

A financial arrangement where a lender offers a borrower the possibility to purchase goods or services now and pay for them later.

High Debt

Refers to a significant level of liabilities or borrowed funds in relation to assets or equity, which can indicate financial risk.

Increasing Expenses

A situation where the costs of operating a business or undertaking a project are rising.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, illustrating profit or loss.