Which of the Following Statements Most Accurately Describes an Aspect

question 1

Multiple Choice

Which of the following statements most accurately describes an aspect of a tax-deferred sale of a business to a group of employees, through share reorganization?

• A)There is a risk to the original shareholder, as the value of his/her preferred shares depends on the success of the corporation following the sale.
• B)The vendor generally does not participate in financing the sale of the business.
• C)The employees will purchase the corporation's original common shares from the vendor.
• D)This method of sale is appropriate when the vendor is unsure of the purchaser's ability to manage the business.

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Definitions:

Situational Attributions

The process of explaining the behavior of others based on external factors or circumstances, rather than attributing their actions to internal characteristics.

Biological Trait

A characteristic or feature of an organism that is inherited from its parents and can be physically observed or measured.

External

Referring to or situated on the outside of something; coming or deriving from a source outside the subject affected.

Out-Group

A group of people excluded from or not belonging to one's own group, often leading to us vs. them mentality.