1. To be eligible to be an S corporation, a firm must

a. be domestic.

b. be international in scope

c. have two or more classes of stock outstanding.

d. have more than 75 stockholders.

2. stockholders have limited liability unless they

a. own preferred stock.

b. assume personal liability for debt.

c. are active in the management of the corporation.

d. convert their shares to partnership status.