Identify Which of the Following Statements Is True

question 53

Multiple Choice

Identify which of the following statements is true.

• A)A plan of reorganization must be a written document.
• B)Advance rulings are required for all reorganizations.
• C)The IRS will issue an advance ruling on any proposed tax-free reorganization.
• D)All of the above are false.

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Definitions:

Incidental Beneficiary

A third party who benefits from a contract between two other parties, despite not being a party to that contract and having no rights to enforce the terms of the contract.

Intended Beneficiary

A person or entity that is not a party to a contract but stands to benefit from the contract's performance.

Obligor

A contractual party who agrees to do something for the other party.

Donee Beneficiary

A donee beneficiary is a third party who benefits from a contract made between two other parties, where the intent is to gift the benefits of the contract to this third party.