Which of the Following Is False Regarding Requirements Needed for a Business

question 70

Multiple Choice

Which of the following is false regarding requirements needed for a business to qualify as an S corporation?

• A) It must have no more than 100 shareholders.
• B) Individuals, trusts, partnerships, and in some circumstances corporations can be shareholders.
• C) All S corporations must be domestic corporations.
• D) No shareholder can be a nonresident alien.
• E) S corporations can issue only one class of shares, although they need not have identical voting rights.

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Definitions:

Intentional Community

A planned residential community designed with a high degree of social cohesion and teamwork, sharing common values or interests.

Group Processes

The psychological and social dynamics that occur within a group setting, influencing how members interact, make decisions, and solve problems.

Trade and Barter

An economic system where goods or services are exchanged without the use of money.

Equity

The principle of fairness or justice in the way people are treated, often referring to the distribution of resources or opportunities.