55.Assume that the corporation in the prior question is a C corporation. Give one strong legal reason why the company would not make an S election.

56.Perry's sister Penelope buys an old apartment building to fix up. The building is in her name. Perry comes over to look at the building because he might want to invest in it. There is a weak spot in the floor and Perry falls through.

A.Perry sues Penelope as an individual.

B.Perry sues Penelope as a business running the apartment building.

C.Perry can't sue because he is a potential investor and suing would breach his duty to the company.

D.Perry can't sue because he is related to Penelope.