Which of the Following Statements Is True of S-Corporation

question 19

Multiple Choice

Which of the following statements is true of 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:

Recreational Activities

Activities participated in for enjoyment, relaxation, or leisure, often distinct from professional or obligatory tasks.

Synergy

A mutually beneficial interaction between parts of an organization that allows it to create something greater than the sum of its individual outputs.

Economic Sense

The rationality or logic underlying financial decisions or policies.

Leisure Time

is time free from work or duties, allowing individuals to engage in recreational activities or rest.