In Terms of an S Corporation, Which of the Following

question 48

Multiple Choice

In terms of an S corporation, which of the following is a requirement that must be maintained so that the corporation does not lose its tax status?

• A) There can be no more than 80 shareholders in an S corporation.
• B) The shareholders must all be corporate shareholders or partnerships.
• C) The losses and earnings are not to be reported on the shareholders' individual tax returns.
• D) Shareholders must consent in writing to having the corporation taxed as a partnership.

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Definitions:

Personal Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Personal Adequacy

A sense of self-sufficiency, competence, and confidence in one's abilities and qualities.

Independence

The state or quality of being self-reliant and free from outside control or support in one's actions and decisions.

Silence

The absence of any sound or noise; it can also refer to the practice of refraining from speaking as a form of communication or as a meditative technique.