An S-Corporation Can Issue Both Voting and Non-Voting Common Stock

question 13

True/False

An S-corporation can issue both voting and non-voting common stock to its shareholders.

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Definitions:

Cash Dividends

Earnings paid out to shareholders by a corporation, typically as a profit distribution.

Equity Method

An accounting technique used to record investments in other companies, recognizing the investor’s share of investee profits and losses.

Long-Term Investment

Investments held for an extended period, typically exceeding one year, with the intention of generating higher returns.