Which of the Following Statements Best Describes the Continuity of Interest

question 39

Multiple Choice

Which of the following statements best describes the continuity of interest principle as it applies to a tax-deferred acquisition?

• A)Continuity of interest requires each shareholder to receive at least 40 percent of the consideration received in equity of the acquirer.
• B)Continuity of interest requires shareholders in the aggregate to receive at least 40 percent of the consideration received in equity of the acquirer.
• C)Continuity of interest requires each shareholder to receive at least 80 percent of the consideration received in equity of the acquirer.
• D)Continuity of interest requires shareholders in the aggregate to receive at least 80 percent of the consideration received in equity of the acquirer.

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Definitions:

Ecological Validity

Ecological validity concerns how well the findings of a research study can be generalized to real-world settings.

Evolutionary Validity

The extent to which findings and theories in psychology are consistent with evolutionary principles and the history of human development.

Within-subjects Design

An experimental design in which the same subjects are exposed to all conditions or treatments, minimizing variability among participants.