Which of the Following Are Required for an Acquisition to Be

question 17

Multiple Choice

Which of the following are required for an acquisition to be considered tax-free?

• A) Continuity of interest
• B) A legitimate business purpose other than tax avoidance
• C) The use of predominately acquirer shares to buy the target's shares
• D) An all cash acquisition of the target firm's shares
• E) A, B, and C only

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Definitions:

Average Abundance

The typical concentration or amount of a particular element or species within a defined space or ecosystem.

Nonsilicate Mineral

Minerals that do not contain silicon-oxygen tetrahedra, including various groups like carbonates, sulfates, and oxides.

Plagioclase Feldspar

A group of common rock-forming silicate minerals that are significant components of many igneous rocks.

Potassium Feldspar

A very common silicate mineral that contains potassium; synonym: K-feldspar.