Congress created S corporations (S corps) to encourage entrepreneurship. Which of the following statements regarding S corps is true?

a. Shareholders of S corps have both the limited liability of a corporation and the tax status of a flow-through entity.

b. Shareholders of S corps have the liability of a partnership and the tax status of a flow-through entity.

c. Shareholders of S corps have both the limited liability of a corporation and the tax status of a corporation.

d. Shareholders of S corps have both the liability and the tax status of a partnership.