The "Type B" Reorganization Requires a Continuity of Business Interest

question 13

True/False

The "Type B" reorganization requires a continuity of business interest. Therefore, the acquiring corporation must obtain at least 40% of target corporation's stock through the reorganization.

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Definitions:

Acceptance Sampling

A method of measuring random samples of lots or batches of products against predetermined standards.

Assignable Variation

Variation in a production process that can be traced to specific causes.

Operating Characteristics

These refer to the performance metrics and behavior of a system under specified conditions.