Which of the Following Would Not Result in an S

question 45

Multiple Choice

Which of the following would not result in an S election termination?

• A) Having 120 unrelated shareholders.
• B) Having a C corporation as a shareholder.
• C) Issuing a second class of stock.
• D)Having excess passive investment income for two consecutive years.
• E)None of these

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Definitions:

External Equity

Perceived fairness in pay relative to what other employers are paying for the same type of work.

Compensation Process

The set of policies and mechanisms for determining employee pay, benefits, and other forms of remuneration.

Pay Level

A classification denoting the amount of compensation or salary assigned to a job, based on factors like complexity, responsibility, and market rates.

Pay Levels

The ranges of compensation provided to employees, often determined by experience, education, and role responsibilities within an organization.