Which of the Following Is True Regarding S Corporations

question 17

Multiple Choice

Which of the following is true regarding S corporations?

• A) They are considered partnerships yet taxed like corporations as long as they follow regulations.
• B) They cannot have more than 80 shareholders.
• C) Shareholders do not report profit on their personal income tax forms.
• D) They are formed under federal law.
• E) Income of the corporation is not taxed when it is distributed to shareholders.

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Definitions:

Romanian Orphanages

Institutions in Romania, noted in studies for their impact on child development due to deprivation and neglect experienced by children.

Adopted

A person who has been legally taken by another family as their own child, granting them the same rights and privileges as a biological child.

Months

Units of time, typically used in calendars, that roughly correspond to the period of time it takes for the moon to orbit the Earth, commonly divided into 12 periods in a year.

Temper Tantrum

An emotional outburst, usually seen in young children, characterized by yelling, crying, and sometimes physical behaviors like kicking or hitting, often in response to frustration or desire for attention.