Which One of the Following Statements Is NOT True

question 27

Multiple Choice

Which one of the following statements is NOT true?

• A) An Scorporation can have no more than100 stockholders.
• B) All profits of an Scorporation pass directly to the stockholders as they would pass to the partners in a partnership.
• C) An Scorporation is a variation of the Ccorporation form that is used by public corporations.
• D) Only some Ccorporations can become an Scorporation with approval from the IRS.

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Definitions:

Straight-Line Depreciation

An arrangement for allocating the cost of a tangible asset over its duration of usefulness in identical annual segments.

Discount Rate

The interest rate charged to commercial banks and other depository institutions by the central bank for loans received from the central bank's discount window; it is also used in discounted cash flow analysis to determine the present value of future cash flows.

Payback Period

The duration required for an investment to recoup its initial outlay in terms of profits or savings.

Initial Investment

The amount of money used to start a project, business, or investment, often encompassing costs such as capital expenditures and working capital.