Asked by MATTANAPORN CHANTIYANON on May 10, 2024
Verified
An S corporation election requires the consent of ________ of its shareholders.
A) none
B) all
C) the majority
D) two-thirds
S Corporation Election
A tax status election made by a corporation with the Internal Revenue Service to be taxed as a pass-through entity, avoiding double taxation on corporate income.
Shareholders' Consent
The approval or agreement by shareholders, often required for major company decisions, typically obtained through voting mechanisms.
Majority
Majority refers to more than half of a particular group or amount, often used to describe the requirement for decision-making in voting contexts.
- Understand the duties and functions of board members and the consequences of decisions made by shareholders.
Verified Answer
Learning Objectives
- Understand the duties and functions of board members and the consequences of decisions made by shareholders.
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