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Which of the Following Is False Regarding Requirements Needed for a Business

Question 46

Multiple Choice

Which of the following is false regarding requirements needed for a business to qualify as an S corporation?


A) It must have no more than 100 shareholders.
B) Individuals, trusts, partnerships, and in some circumstances corporations can be shareholders.
C) All S corporations must be domestic corporations.
D) No shareholder can be a nonresident alien.
E) S corporations can issue only one class of shares, although they need not have identical voting rights.

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