Which Is True of an S Corporation

question 28

Multiple Choice

Which is true of an S corporation?

• A)There can be no more than 50 shareholders.
• B)There can be only one class of stock.
• C)A majority of shareholders must agree the company should be an S corporation.
• D)All of these are correct.

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Definitions:

Chunking

A process of breaking down information into smaller, manageable units or chunks to enhance memory and learning capabilities.

Short-term Memory

A capacity of the brain to hold a small amount of information in an active, readily available state for a short period of time, typically around 20 to 30 seconds.

Meaningful Units

Fundamental components of language or information that carry significance and help in understanding the whole.

George Miller

A psychologist best known for his theory that the average number of objects an individual can hold in short-term memory is 7 ± 2.