A Tax Advantage of Business Combination Can Occur When the Existing

question 1

Multiple Choice

A tax advantage of business combination can occur when the existing owner of a company sells out and receives:​

• A)​cash to defer the taxable gain as a "tax-free reorganization."
• B)​stock to defer the taxable gain as a "tax-free reorganization."
• C)​cash to create a taxable gain.
• D)​stock to create a taxable gain.

---

Definitions:

Confidence

In statistics, confidence refers to the probability that a parameter lies within a specified interval estimate.

Confidence Interval Estimate

The specific range estimated from the sample data within which the true value of a population parameter is expected to fall with a certain level of confidence.

Normally Distributed

A type of distribution where data points are symmetrically distributed around the mean, forming a bell-shaped curve.

Antioxidants

Substances that can prevent or slow damage to cells caused by free radicals, often found in food.