What Is the Maximum Number of Unrelated Shareholders a C

question 49

Multiple Choice

What is the maximum number of unrelated shareholders a C corporation can have, the maximum number of unrelated shareholders an S corporation can have, and the maximum number of partners a partnership may have?

• A) 100; no limit; no limit
• B) no limit; 100; 2
• C) no limit; 100; no limit
• D)100; 100; no limit

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Definitions:

Common Stock

A type of equity ownership in a corporation, with voting rights and potential dividends.

Financing Activities

Actions that result in changes in the size and composition of the equity capital or borrowings of the company, as reported in the cash flow statement.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.

Long-Term Liabilities

Refers to debts or obligations that are due in over a year's time, including loans, bonds payable, or lease obligations.