Identify Which of the Following Statements Is True

question 33

Multiple Choice

Identify which of the following statements is true.

• A) 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.
• B) 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.
• C) 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.
• D) All of the above are false.

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, making them partial owners of the company.

Leaders and Loyalty

The relationship and dedication that leaders inspire in their followers to commit to a cause or organization.

Nuremberg Defense

A legal defense where the defendant claims they were following orders and therefore should not be held responsible for their actions.

Nazi War Criminals

Individuals who were part of the Nazi regime and committed atrocities during World War II, later tried for war crimes.