Which of the Following Is One of the Conditions Necessary

question 7

Multiple Choice

Which of the following is one of the conditions necessary for an amalgamation to result in a tax-free combination?

• A)At least one of the corporations must be Canadian.
• B)The two corporations must be in a similar line of business.
• C)50 percent of the assets and liabilities of the old corporation must become assets and liabilities of the new corporation.
• D)All of the shareholders of the old corporations must become shareholders of the new corporations.

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Definitions:

Cardiovascular System

Organ system of humans that consists of the heart and blood vessels; transports blood, nutrients, gases, and wastes; assists in the defense against disease; helps control homeostasis.

Endocrine System

A collection of glands that secrete hormones directly into the circulatory system to be carried towards distant target organs.

Skeletomuscular System

The combined system of the human body that includes both skeletal and muscular components, responsible for support, movement, and protection.