Final answer:
An S Corporation cannot have more than 100 shareholders and requires other conditions such as all shareholders being U.S. citizens or residents. In the hypothetical company example, the two largest investors together do not have a majority and would need additional shareholders to control the company's management. Finally, without distribution details, it's impossible to determine how many students would receive $250 or more.
Step-by-step explanation:
An S Corporation cannot have more than 100 shareholders. This limitation allows the corporation to offer benefits such as pass-through taxation while avoiding the double taxation typically experienced by C corporations. However, there are other stipulations for being an S Corporation, including that the shareholders must be U.S. citizens or residents, and the company can only have one class of stock.
In the case of the Darkroom Windowshade Company, to change the company's top management, you would need a majority of the voting shares. Investors 1 and 2 together have 20,000 shares and 18,000 shares, respectively, summing up to 38,000 shares.
Since the company has 100,000 shares outstanding, a majority would require 50,001 shares. Investors 1 and 2 do not hold a majority on their own, so they would need to form a coalition with additional shareholders to ensure they always get their way in how the company is run.
Regarding the question on expected value, if we do not have information about the distribution of the $250 amounts among the students, we cannot determine how many of the sample of 200 students are expected to receive $250 or more.