Which of the Following Classes of Stock Is Not Allowed

question 10

Multiple Choice

Which of the following classes of stock is not allowed to be used in a section 351 transaction?

• A)Voting common stock.
• B)Voting preferred stock.
• C)Nonvoting preferred stock.
• D)All of these classes of stock can be used in a section 351 transaction.

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Definitions:

Competitive

Having a strong desire to be more successful than others, often characterized by strategies aimed at winning or achieving superiority.

Cooperative

An organization or system operated and owned by a group of individuals for their mutual benefit, focusing on shared goals or interests.

Social

Pertaining to the way in which individuals interact with one another within society, including the structures and conventions that govern these interactions.

Economic

Relating to the production, distribution, and consumption of goods and services, or the wealth and resources of a region or community.