Identify Which of the Following Statements Is True

question 22

Multiple Choice

Identify which of the following statements is true.

• A)Both a Type B reorganization or a reverse triangular merger will not allow the target corporation to remain in existence.
• B)Andrews Corporation gives 10% of its stock worth $200,000 and Andrews notes worth $10,000 in exchange for 80% of Baxter Corporation's stock. The exchange qualifies as a Type B reorganization.
• C)In a Type B reorganization, with minor exceptions, only voting stock can be used by the acquiring corporation to acquire the target corporation's stock.
• D)All of the above are false.

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Definitions:

Joint Ventures

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.

Global Market

The international trading system comprising of buyers and sellers from different countries, facilitating the exchange of goods, services, and capital across borders.

Buying

The act of obtaining goods or services in exchange for money, or the procurement process in businesses.

Alibaba Group

A Chinese multinational conglomerate specializing in e-commerce, retail, internet, and technology.