Which of the Following Statements Is True of a Corporation

question 69

Multiple Choice

Which of the following statements is true of a corporation?

• A) An S-corporation can have no more than 500 stockholders.
• B) All profits of an S-corporation do not pass directly to the stockholders as they would pass to the partners in a partnership.
• C) Profits earned in C-corporations are taxed only once at the corporate tax rate.
• D) S-corporations have better access to capital compared to C-corporations.

---

Definitions:

X Chromosome

One of the two sex chromosomes, X chromosome is a vital part of the genetic makeup that plays a crucial role in determining gender and other genetic traits.

Freedom

The power or right to act, speak, or think as one wants without hindrance or restraint.

Self-reliance

The reliance on one's own powers and resources rather than those of others.

Reflexes

Automatic and involuntary responses of the body to specific stimuli, designed to protect the body and maintain homeostasis.