Which of the Following Statements Is True of a Corporation

question 61

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 less limited access to capital compared to C-corporations.

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Definitions:

Inherent Zero

A zero point that indicates an absence of the quantity under measurement, giving a true zero value meaning in the context.

Ratio Scale

A scale of measurement that has a meaningful zero value and allows for comparisons of absolute magnitudes and the computation of ratios.

Measurement

The process or the result of quantifying the characteristics or properties of something, usually by comparing it to a standard.

Defined

Clearly specified or identified.