Maurice and Stanley have sold stock to eight of their friends and have enough money to expand the business and to open another store. During a shareholders' meeting, Maurice, Stanley, and the eight other shareholders unanimously agreed that it would be better to pass through the company's profits and losses like a partnership. All of the shareholders are individuals and United States citizens. The shareholders could vote to change the corporation into a(n)
A)S-corporation.
B)limited liability company.
C)alien corporation.
D)foreign corporation.

Question

​Maurice and Stanley have sold stock to eight of their friends and have enough money to expand the business and to open another store. During a shareholders' meeting, Maurice, Stanley, and the eight other shareholders unanimously agreed that it would be better to pass through the company's profits and losses like a partnership. All of the shareholders are individuals and United States citizens. The shareholders could vote to change the corporation into a(n)
A)​S-corporation.
B)​limited liability company.
C)​alien corporation.
D)​foreign corporation.

Quizplus · Accepted Answer

An S-corporation allows profits and losses to be passed through to shareholders like a partnership, and it is available to U.S. citizens.

​Maurice and Stanley Have Sold Stock to Eight of Their

Maurice and Stanley Have Sold Stock to Eight of Their