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.

---

Definitions:

Boston Massacre

A confrontation on March 5, 1770, in which British soldiers killed five colonial civilians in Boston, escalating tensions leading to the American Revolution.

Manslaughter

A legal term for the killing of a human being without the intention to do so, either in a voluntary act in the heat of the moment or involuntarily through negligence.

Trial

A formal examination of evidence by a judge, and typically a jury, in order to decide guilt in a case of criminal or civil proceedings.

Linear Loads

A type of electrical load where the current is directly proportional to the voltage, resulting in a constant load impedance throughout the operation.