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:

Agency Relationship

A fiduciary relationship in which one party (agent) acts on behalf of and under the control of another party (principal) in dealing with third parties.

Sales Representative

A person employed to sell products or services for a company, often directly to customers.

Percent Discount

A reduction in price, usually calculated as a certain percentage of the original price.

Full Amount

The complete or total sum of money required or specified, without deductions.