14)

Which of the following types of corporations can have only 100 or fewer shareholders according to the Internal Revenue Code?

Multiple Choice

• For-profit corporation

• S corporation

• Publicly held corporation

• Not-for-profit corporation

16)

Which of the following is a good strategy to prevent the piercing of the corporate veil between a parent company and its subsidiary?

Multiple Choice

• Assets should be bought only in the name of the subsidiary.

• Transactions between them should happen at fair value.

• They should keep a common book of accounts.

• Records of transactions should be maintained only by the parent company.