Identify Which of the Following Statements Is True

question 90

Multiple Choice

Identify which of the following statements is true.

• A)The acquired corporation in a Type C reorganization may retain its corporation charter.
• B)Alpha Corporation acquires 100% of the assets of Beta Corporation in exchange for $75,000 of Alpha stock and $25,000 in cash. Beta is subsequently liquidated. This exchange qualifies as a Type C reorganization.
• C)Alpha Corporation acquires 100% of the assets of Beta Corporation in exchange for $75,000 of Alpha stock and the assumption of $25,000 of Beta liabilities. Beta is subsequently liquidated. This exchange does not qualify as a Type C reorganization.
• D)All of the above are false.

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Definitions:

Firm Decreases Price

A strategic action where a company lowers the selling price of its goods or services to attract more customers or increase sales volume.

Revenue

represents the total amount of income generated by a company from its business activities, such as sales of goods and services, before any expenses are subtracted.

Demand Curves

Curves that describe buyer behavior and tell you how much consumers will buy at a given price.

Consumer

An individual or group who purchases goods or services for personal use.