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:

Voluntary

Actions or activities done by free will without any coercion or compulsion.

Arbitration

A method of resolving disputes outside the courts, where the parties to a dispute refer it to one or more persons (the arbitrators, arbiters, or arbitral tribunal), whose decision (the award) they agree to be bound by.

Arbitrator

An independent, neutral third party chosen to settle a dispute or conflict between two parties outside of the court system, often in labor or commercial disputes.

Contract

A legally binding agreement between two or more parties that outlines the terms and conditions of a particular arrangement.