Question

The term "S Corporation" comes from

a. the Internal Revenue Code.
b. the FTC rules.
c. the Securities and Exchange Commission.
d. state corporation law.

Answer 1

An S Corporation derives its name from state corporation law and receives special tax treatment.

Step-by-step explanation:

The term "S Corporation" comes from state corporation law. An S Corporation is a type of corporation that meets specific criteria laid out in state laws, allowing it to receive special tax treatment. This includes pass-through taxation, where the corporation's profits and losses are passed through to the shareholders' individual tax returns.