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:

Service-Sponsored Retail Franchise System

A franchise model in which the franchisor provides a comprehensive service package, including branding, to retail franchisees.

Manufacturer-Sponsored Wholesale Franchise System

A franchising approach where manufacturers allow distributors to sell their products exclusively, creating a standardized distribution network.

Trade Name

A commercial name under which a company conducts business, distinct from the company's legal name.

Administered Vertical Marketing System

A coordinated marketing strategy where a dominant member of a distribution channel wields its power to organize, manage, and motivate other members in the channel to ensure a cohesive and efficient marketing effort.