Vetter, Inc., an S Corporation, is planning to expand into a new line ofbusiness. The new line of business will be risky, and the owners of Vetter areconcerned about protecting the assets of the current business. With respect tothe new line of business, Vetter can establish:

A) A subsidiary corporation operating as a C corporation.

B) A subsidiary corporation operating as an S corporation.

C) A subsidiary corporation operating as either a C corporation or an S

corporation.

D) None of the above. An S corporation is not allowed a subsidiary.