Identify Which of the Following Statements Is True

question 12

Multiple Choice

Identify which of the following statements is true.

• A) 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.
• B) 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.
• C) The acquired corporation in a Type C reorganization may retain its corporation charter.
• D) All of the above are false.

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Definitions:

Single Cell

An organism or the basic structural unit of an organism that consists of only one cell, exemplifying both unicellular organisms and the cellular basis of multicellular life.

Avery, MacLeod, McCarty

A scientific team that demonstrated DNA as the substance responsible for transferring genetic information, laying groundwork for modern molecular biology.

Transforming Substance

A factor or component that induces change or transformation in a substance, often used in context with genetic material.

R Bacteria

Bacteria that possess a smooth (R) colony morphology, often referenced in studies of bacterial genetics.