The Acquirer Must Be Careful That Not Too Large a Proportion

question 39

True/False

The acquirer must be careful that not too large a proportion of the purchase price be composed of cash, because this might not meet the IRS's requirement for continuity of interests of the target shareholders and disqualify the transaction as a Type A reorganization.

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Definitions:

Office of Consumer Affairs

A governmental or organizational department responsible for protecting consumer rights, handling complaints, and providing information on consumer issues.

Appetite Suppressant

A substance that reduces a person's desire to eat.

Ethical Standards

Principles and values that guide behavior and decision-making, ensuring integrity and fairness.

Deceptive Claims

False or misleading statements made to manipulate or deceive others, often found in advertising or misinformation.