Which of the Following Would Be Most Likely to Benefit

question 41

Multiple Choice

Which of the following would be most likely to benefit from choosing S corporation status?

• A)Startup companies anticipating net losses.
• B)Corporations where net profits before any compensation to shareholders is less than $100,000 per year.
• C)Highly profitable firms with substantial dividends to pay out to shareholders.
• D)A and C only

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Definitions:

AC

Alternating Current, a type of electrical current where the flow of electric charge periodically reverses direction.

Galvanometer

A meter movement requiring microamperes to cause a full-scale deflection. Many galvanometers have a zero center, which permits them to measure both positive and negative values.

Digital Ammeter

An instrument used to measure electric current flow in a circuit, displaying the value digitally for accuracy and ease of reading.

Voltmeter

An instrument used for measuring the electrical potential difference between two points in an electric circuit.