Identify Which of the Following Statements Is True

question 94

Multiple Choice

Identify which of the following statements is true.

• A)To have a bona fide partial liquidation, a firm must continue to conduct a qualified trade or business, which it had conducted for a period of more than three years prior to the redemption.
• B)To qualify as a partial liquidation, a distribution must result in a bona fide contraction of the corporate business at the corporate level.
• C)A partial liquidation of a corporation must be pro rata.
• D)All of the above are false.

---

Definitions:

Counterfeit Goods

Products that are made to imitate genuine items, often of lower quality, with the intent to deceive consumers.

Online Sales

The process of buying and selling goods and services via the internet through various digital platforms or websites.

Copyright Protection

Legal rights granted to authors, creators, or publishers to exclusively reproduce, distribute, and display their original works.

U.S. Copyright Office

An official agency of the United States Federal government responsible for registering copyrights; it provides copyright protection to authors of original works.