Which of the Following Is Not Considered a Family Member

question 50

Multiple Choice

Which of the following is not considered a family member for purposes of the S corporation shareholder limit test?

• A) brother.
• B) great-grandparent.
• C) grandchildren.
• D) grandparent.
• E) none of the choices are correct.

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Definitions:

Idle Capacity

Unused productive ability within a business, often resulting in inefficiency because resources are not being utilized to generate revenues.

Classification

A method of arranging entities in an organized system of categories.

Inventory Cost

The total cost associated with keeping goods in stock, including storage, insurance, taxes, and opportunity costs.

Equipment

Tangible assets used in the operation or production process of a business, ranging from office supplies to heavy machinery.