In a Reorganization, the Original Corporation Must Receive at Least

question 121

Short Answer

In a reorganization, the original corporation must receive at least 80% percent of new corporations' stock. The assets transferred to the new corporations must have been owned and conducted as a trade or business for at least years.

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Definitions:

Market Development

A growth strategy where a company seeks to sell its current products in new markets or new segments of existing markets.

Growth Strategy

A growth strategy is a plan of action designed to increase the size and scope of a business, by expanding its market reach, product portfolio, or operations.

Market Penetration

A measure of the extent to which a product or service is recognized and purchased by customers within a specific market.

Product Development

The creation of new or improved products or services to meet market demands, involving design, development, and marketing stages.