Which of the Following Is True About an S Corporation

question 28

Multiple Choice

Which of the following is true about an S corporation?

• A) It is taxed at both the corporate and shareholder levels.
• B) It may only have 500 or less shareholders.
• C) An S corporation election requires the consent of a majority of its shareholders.
• D) Shareholders of an S corporation may be only individuals or trusts.

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Definitions:

Mexican Foods

Dishes originating from Mexico, characterized by vibrant flavors and diverse ingredients.

Eating Out

The activity of dining in restaurants or other food establishments rather than at home.

High-Quality Products

Goods that meet or exceed customers' expectations in terms of functionality, durability, and reliability.

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of operation increases leading to a reduction in average costs.