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:

Liquidation

The process of ending a business and distributing its assets to claimants, typically occurring when a company becomes insolvent.

Investment

Investment refers to the allocation of resources, such as time, money, or effort, in something with the expectation of generating income or profit.

Book Value

The net value of a company's assets minus its liabilities, as shown in financial statements.

Profit and Loss Ratio

A financial metric that compares the profits and losses of a business, often used to assess operational efficiency and financial health.