Detailed Answer
(a) Tax treatment is the main reason why Subchapter S
corporations are formed instead of Subchapter C corporations.
Answer (b) is incorrect because this federal Act covers both types
of corporations. Answers (c) and (d) are incorrect because the
provisions on the limited liability of shareholders and the provisions
for the structure of corporate management are some of the
ways that Subchapter C and Subchapter S corporations are generally
similar.
