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Familias Inc Is a Small Corporation

Question 32

Multiple Choice

Familias Inc is a small corporation. Jennifer is one of only three shareholders. Questions recently have arisen regarding Jennifer's relationship to the company. Which of the following statements is TRUE?


A) if Jennifer dies, the company automatically will cease to exist unless the other shareholders purchase Jennifer's assets from her estate
B) because she is a shareholder, Jennifer cannot also be a creditor of the company
C) because she is a shareholder, Jennifer cannot also be an employee of the company
D) Jennifer is taxed for one third of any profits that the company earns
E) none of the above

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