Which of the following statements about stock ownership is not correct? A) A C corporation can own stock of an S corporation.
B) An S corporation can own stock of a C corporation.
C) A tax-exempt charity can own stock of an S corporation.
D) An S corporation can own stock of a Qualified Subchapter S Subsidiary.

Answers

Answer 1

A. C corporation may own S corporation stock. The ownership of a portion of the issuing company is represented by a stock, sometimes referred to as equity, which is a type of security.

What does it mean to possess shares in a company?

A share of a company's ownership is what stock is, simply said. The company's assets and earnings are represented as a claim on stock. Your ownership interest in the company increases as you purchase additional stock. Equivalent meaning can be derived from the terms shares, equity, and stock.

What drawbacks come with owning stocks?

Investing in stocks has drawbacks. Individual investors should be aware of a few clear drawbacks associated with stocks: Risky and unpredictable stock prices exist. Prices can change abruptly, rapidly rising and falling,

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Related Questions

Economy where the government owns and offers all the goods and services.

Answers

This type of economy is called a planned or command economy, where the government makes all decisions about the production, distribution, and consumption of goods and services.

In this type of system, the government decides what goods and services will be produced, how they will be produced, and how they will be distributed to the people.

The goal is to achieve a specific outcome, such as greater economic equality or full employment, but the results can be inefficiencies and a lack of consumer choice.

This type of economy will promote equal opportunity and it works for the welfare of the people of the nation will lead to the development of that nation.

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you must provide management with a project schedule that displays the project as a summary of the work packages only. the schedule also needs to display the progress for each work package. which is the best method to use to provide this information?

Answers

Bar Chart utilized to display schedules. Each bar's length reflects the length of the job bundle it represents. They are frequently used in business presentations and are generally simple to read.

What is a Bar Chart?

Each price bar in a bar chart represents the price movement for a specific time period. The highest and lowest prices that were achieved during the period are displayed as vertical lines on each bar. A tiny horizontal line to the left of the vertical line designates the initial price, and a tiny horizontal line to the right of the vertical line designates the closing price. The bar may be tinted black or green if the closing price is higher than the open price. On the other hand, if the close is lower than the open, the price fell during that time, so it can be highlighted in red. Trading professionals can more easily identify trends and price changes by color-coding the bars.

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 Which of the following statements about managerial compensation is correct? Stock-based manager compensation does not guarantee a future cash benefit to managers. Manager compensation should always be either cash-based or stock based. From a manager's standpoint.cash compensation is always preferable over stock-based compensation Compensating managers with year-end cash bonuses always motivates managers to do what is best for the company as a whole.

Answers

Stock-based manager compensation does not guarantee a future cash benefit to managers statement about managerial compensation is correct.

What is managerial compensation?

Compensation for services rendered to a corporation in a managerial role is known as managerial pay. Along with financial compensation, this may also include perks like stock options, health insurance, and bonuses. Although they often earn less than the employees they oversee, managers typically earn more than the company's top executives. Compensation for services rendered to a corporation in a managerial role is known as managerial pay. Along with advantages like stock options and health insurance, this may also involve cash payments.

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Suppose that the consumer moves from point a to point b along her indifference curve. If the marginal utility of winter coats is 25, the marginal utility of wool sweaters is:

Answers

Consider the scenario where the consumer moves from point A to point B on her indifference curve. The marginal utility of wool sweaters is (slope = -2) 50 if the marginal utility of winter coats is 25.

What in economics is an indifference curve?

An indifference curve is a graphic representation of a collection of products that give consumers similar levels of satisfaction, leading to their indifference. A consumer or individual is indifferent between the two products at every point on the indifference curve because they provide the same kind of utility.

With examples, define the indifference curve.

All product combinations that offer an equivalent level of utility or satisfaction are displayed on an indifference curve. Figure 1 illustrates Lilly's preferences for the sacrifices she must make between her two major ways of unwinding: eating doughnuts and reading paperback books.

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suppose the economy is initially in long-run equilibrium. then suppose there is a drought that destroys much of the wheat crop. if policymakers allow the economy to adjust to long-run equilibrium on its own, according to the model of aggregate demand and aggregate supply, what happens to prices and output in the long run? a. output rises; prices are unchanged from the initial value. b. prices rise; output is unchanged from its initial value. c. prices fall; output is unchanged from its initial value. d. output and the price level are unchanged from their initial values. e. output falls; prices are unchanged from the initial value.

Answers

Prices rise; output is unchanged from its initial value is the correct option.

Where does macroeconomic equilibrium occur when aggregate demand equals long-run aggregate supply?

When the long-run aggregate supply (LRAS) curve intersects the aggregate demand curve, long-run macroeconomic equilibrium is reached. The economy is at full productive capacity when it is operating on its long-run aggregate supply curve.

The long-run self-adjustment procedure is a procedure by which the economy returns to its equilibrium point following a market shock. Prices and wages are flexible in the long run.

Therefore,  In the long run, changes in prices and wages restore the equilibrium at full employment output.

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