Which of the Following Statements Is True of an S-Corporation

question 76

Multiple Choice

Which of the following statements is true of an S-corporation?

• A) An S-corporation can have more than 100 stockholders.
• B) All profits of an S-corporation pass directly to the stockholders as they would pass to the partners in a partnership.
• C) An S-corporation is a variation of the LLC (limited liability company).
• D) Only foreign investors can own the shares of an S-corporation.

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Definitions:

Light Waves

Light waves perceptible by the human eye that enable the sense of vision.

Cost-Effective

An attribute of a process, product, or service that provides good value or return for the amount spent.

Wired Transmission Media

Physical materials like copper cables and optical fibers used to transmit data through electrical or light signals in a network.

Web Server

Computer hardware or software that hosts websites, serving content to users over the web based on their requests.