What Statement Is Correct with Respect to an S Corporation

question 120

Multiple Choice

What statement is correct with respect to an S corporation?

• A)There are now more LLCs than S corporations.
• B)S corporation status allows shareholders immediately to realize tax benefits from corporate losses.
• C)An S corporation is prohibited from being a member of an affiliated group.
• D)An LLP may own stock in an S corporation.
• E)None of the above statements is correct.

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Definitions:

Fertilization

The process by which male and female gametes fuse to form a zygote, initiating the development of a new organism.

Endoderm

The innermost layer of cells or tissue of an embryo in early development that gives rise to the lining of the digestive and respiratory systems.

Circulatory System

The circulatory system is an organ system that permits blood and lymph circulation to transport nutrients, oxygen, carbon dioxide, hormones, and blood cells to and from cells in the body.

Mesoderm

The intermediate layer in an embryo during its initial stages of development, responsible for forming the muscular, skeletal, and circulatory systems.