Tiny Co Is for Sale

question 2

Multiple Choice

Tiny Co. is for sale. The corporation has never had shareholdings in other corporations. Which of the following is NOT one of the conditions necessary in the 24 months preceding the sale of shares for qualified small business corporation status to apply for Tiny Co.?

• A) Tiny Co. must be a CCPC.
• B) Tiny Co's shares must not be owned by an unrelated person.
• C) More than 50% of the fair market value of the assets must be 'active business' assets.
• D) More than 90% of the fair market value of the assets must be 'active business' assets.

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Definitions:

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Trustee

A person who is entrusted with the management and control of another’s property or the rights associated with that property.

Federal Bankruptcy Law

A collection of laws outlined in the U.S. Bankruptcy Code that governs the process by which individuals, couples, and businesses may declare bankruptcy in the United States.