Which of the Following Statements Best Describes the Application of the Continuity

question 90

Multiple Choice

Which of the following statements best describes the application of the continuity of enterprise principle to a Type A tax-deferred reorganization?

• A)The continuity of business enterprise principle must be satisfied for both the acquirer and the target corporation.
• B)The continuity of business enterprise principle must be satisfied for only the target corporation.
• C)The continuity of business enterprise principle must be satisfied for only the acquirer.
• D)The continuity of business enterprise principle does not have to be satisfied as long as the business purpose principle is satisfied.

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Definitions:

Negative Response

A reaction that expresses disagreement, disapproval, or a generally unfavorable attitude towards something.

Experimenter Bias

The influence that a researcher's expectations or preferences may have on the results of an experiment, potentially leading to skewed or invalid conclusions.

Statistically Significant

A result is considered statistically significant if it is unlikely to have occurred by chance alone, indicating a genuine effect or difference.

Placebo Effect

The phenomenon in which a person experiences a physiological or psychological improvement after being given a treatment with no therapeutic value, due to their belief in its efficacy.