Which of the Following Is Prohibited from Being an S

question 120

Multiple Choice

Which of the following is prohibited from being an S corporation shareholder?

• A) Foreign citizens that are U.S. residents.
• B) U.S. citizens.
• C) C Corporations.
• D)51 unrelated individuals.
• E)None of these

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Definitions:

Miller-Orr Model

A financial model used to manage cash balances by setting upper and lower limits on cash reserves, triggering buying or selling of securities when these thresholds are crossed.

Safety Stock

Safety stock is additional inventory held by a business to prevent stockouts caused by variations in supply and demand.

Cash Flow

Cash Flow refers to the net amount of cash being transferred into and out of a business, indicating the company's liquidity over a certain period.

Precautionary Need

The motive to hold cash or assets to safeguard against unexpected emergencies or transactions.