In order to establish a C-Corporation,it is a requirement that investors run the company,whereas in an S-Corporation,this is not the case.

Question

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In both C-Corporations and S-Corporations, ownership is determined by the shareholders. However, in a C-Corporation, the shareholders elect a board of directors who are responsible for making major decisions and overseeing management, while in an S-Corporation, shareholders can be directly involved in managing the company.

In Order to Establish a C-Corporation,it Is a Requirement That