Match the Following Items with the Statements That Follow

question 94

Multiple Choice

Match the following items with the statements that follow. Terms may be used more than once.
-Pear Corporation wishes to merge with Plum Corporation. Plum has more name recognition with consumers, so Pear would like Plum to be the surviving corporation. Pear transfers all of its assets and only liabilities associated with real estate to Plum for 45% of Plum's shares. Pear distributes the Plum stock to its shareholders in exchange for their Pear stock. Pear then liquidates.

• A)Boot
• B)Business credits
• C)Capital gain
• D)Continuity of business enterprise
• E)Continuity of interest
• F)Dividend
• G)Discount rate
• H)Earnings and profits
• I)Federal long-term tax-exempt rate
• J)Liability assumption
• K)Ordinary gain
• L)Ownership change
• M)Section 382 limitation
• N)Sound business purpose
• O)Step transaction

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Definitions:

Categorical Syllogism

A form of deductive reasoning consisting of three propositions that are categorical in nature, presenting a relationship between a subject and a predicate.

Minor Term

in syllogistic logic, the term that appears in both the conclusion and one premise of a syllogism, but not the major premise.

Major Premise

The first premise in a syllogism, typically a general statement or proposition that asserts a universal truth or principle.

Categorical Syllogisms

A form of deductive reasoning consisting of a major premise, a minor premise, and a conclusion, each statement being categorical.