Hector is considering expanding his business and has several potential new investors in mind.He originally wanted to form an S-corporation to protect the liability of the investors,but he is now considering a limited-liability company instead because he knows there can be only ____ stockholders in an S-corporation.
A) 10
B) 25
C) 50
D) 100
E) 108

Question

Quizplus · Accepted Answer

An S-corporation can have a maximum of 100 shareholders, which is why Hector is considering a limited-liability company instead.

Hector Is Considering Expanding His Business and Has Several Potential