Identify Which of the Following Statements Is True

question 23

Multiple Choice

Identify which of the following statements is true.

• A)A split-off Type D reorganization occurs when part of the assets of one corporation are transferred to a controlled corporation in exchange for its stock, and shares of the controlled corporation's stock are distributed to all of the distributing corporation's shareholders without having them surrender any of their stock in the distributing corporation.
• B)In a Type D reorganization, the existence of a good corporate business purpose is necessary before the stock of a controlled subsidiary can be distributed to the shareholders of the distributing corporation.
• C)A distribution of a controlled corporation's stock can be a tax-free Type D reorganization, even if none of the distributing corporation's assets are transferred to the controlled corporation.
• D)All of the above are false.

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Definitions:

Waist-To-Hip Ratio

A measure of body shape that compares the circumference of the waist to that of the hips, often used as an indicator of health risks related to body fat distribution.

Hourglass Figure

A body shape defined by a woman's bust and hips being roughly equal in width with a significantly narrower waist.

Proximity

The physical or psychological closeness between people, which can influence relationships and interactions.