To Protect Yourself from Unknown Tax Liabilities When Buying the Stock

question 107

Multiple Choice

To protect yourself from unknown tax liabilities when buying the stock of a business,it makes sense to place part of the purchase price in an escrow account that is earmarked to pay for any corporate liabilities.This is referred to as

• A) Holdback money
• B) Thinning the assets
• C) Escrow settlement
• D) Goodwill