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

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Definitions:

Telephone Messages

Written or electronic notes taken to record information from a telephone conversation when the intended recipient is unavailable.

Peripheral

Relating to or situated on the edge or periphery of something; in computer terms, it refers to devices connected to a computer system externally.

Plug Into

To connect or become involved with something or someone in a direct or significant way.

Computer

An electronic device capable of processing information according to a set of instructions, used for a wide range of tasks.