Which of the following is true of an S corporation?
A) It can be incorporated anywhere in the World.
B) It cannot have more than one hundred shareholders.
C) The corporation has two classes of stock: common stock and preferred stock.
D) It is capitalized as a general partnership firm.
E) Any person from anywhere in the World can become a shareholder of the S corporation.

Question

Quizplus · Accepted Answer

An S corporation cannot have more than one hundred shareholders. The other options are incorrect: A is incorrect because an S corporation must be incorporated in the United States; C is incorrect because an S corporation may only have one class of stock; D is incorrect because an S corporation is capitalized as a corporation, not a partnership; and E is incorrect because shareholders must meet certain eligibility requirements, including being a U.S. citizen or resident alien.

Which of the Following Is True of an S Corporation