Table Corporation Transfers One-Half of Its Assets to Chair Corporation

question 92

Multiple Choice

Table Corporation transfers one-half of its assets to Chair Corporation in exchange for 100% of Chair Corporation's single class of stock. Following the exchange, Table Corporation distributes the Chair stock ratably to its shareholders. This transaction will constitute a

• A)Type A reorganization.
• B)Type C reorganization.
• C)divisive Type D reorganization.
• D)acquisitive Type D reorganization.

---

Definitions:

Legitimate

Something that is lawful, rightful, or in accordance with established rules, standards, or principles.

Political Behavior

Activities that are not required as part of one's formal role in the organization but that influence, or attempt to influence, the distribution of advantages and disadvantages within the organization.

Job Rotation

A human resource management strategy where employees rotate between multiple positions within the organization to learn different aspects of a business and enhance skill diversity.

Political Activity

Actions or movements aimed at influencing or participating in the governance of a society.