If a company elects to be an S Corporation, which of the following statements is true? Be sure to select the very best answer.

	a.	The S Corporation usually pays no taxes.
	b.	The S election affects only the federal income tax
	c.	Shareholders must pay tax as part of their gross incomes.
	d.	All of the above
	e.	None of the above

5 points

Question 2

A company can qualify to be an S Corporation if it has less than _______________________ shareholders.

	a.	100
	b.	500
	c.	250
	d.	1000

5 points

Question 3

True or False:

S Corporations can have 2 levels of stock.

True

False

5 points

Question 4

To be an S Corporation, all the shareholders must elect to become an S Corporation.

True

False

5 points

Question 5

When can an S Corporation status be terminated?

	a.	If there is revocation of the election by the corporation
	b.	When there is failure to satisfy the requirements of small business operations
	c.	When there is receipt of excessive passive investment under certain circumstances
	d.	All of the above
	e.	None of the above