If an S Corporation Never Operated as a C Corporation

question 12

True/False

If an S corporation never operated as a C corporation, it may earn passive investment income without fear of an involuntary S election termination.

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Definitions:

Formula Presentation

A structured, step-by-step sales presentation methodology designed to lead a prospect to a purchasing decision.

Sales Presentation

A pitch or demonstration aimed at persuading potential buyers to purchase a product or service.

Pampered Chef

A multinational multi-level marketing company that sells kitchen tools, food products, and cookbooks for preparing food in the home.

Memorized Sales Presentation

A sales strategy where the salesperson memorizes a sales pitch and delivers it verbatim to each potential customer.