Any Corporation with More Than 100 Shareholders Is Automatically Considered

question 100

True/False

Any corporation with more than 100 shareholders is automatically considered a C corporation for federal income tax purposes.

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Definitions:

Business Cycle

Recurring increases and decreases in the level of economic activity over periods of years; consists of peak, recession, trough, and expansion phases.

Corporate Profits

The surplus income of corporations after paying all expenses, including operational expenses, salaries, and taxes.

Resource Suppliers

Entities or individuals that provide the inputs needed by firms to produce goods and services, such as labor, raw materials, and components.

Capitalist Income

Income earned from the ownership of capital or investments, typically in the form of profits, interest, and dividends.