Family Corporation, a Corporation Controlled by Buddy's Family, Redeems All

question 80

Multiple Choice

Family Corporation, a corporation controlled by Buddy's family, redeems all of Buddy's stock. For the redemption to be treated as a sale, which one of the following conditions must be met?

• A)Buddy cannot be a creditor of the corporation after the redemption.
• B)Buddy cannot be an officer of the corporation after the redemption.
• C)Buddy cannot acquire an interest, even by inheritance, for 10 years unless the bequest was made prior to the redemption.
• D)Buddy must have purchased the redeemed stock from a person whose stock ownership would be attributed to Buddy.

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Definitions:

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An assessment method used to evaluate the flexibility and responsiveness of a system, organization, or project to potential risks.

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An agreed-upon understanding among members of a society on various issues and norms.

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Principles and standards considered by the government in addressing issues which affect the public at large.

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The illegal practice of changing a consumer’s telephone service without permission.