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:

Synaptic Space

The small gap between the axon terminal of one neuron and the dendrite of another neuron, through which neurotransmitters are released to transmit signals.

Synaptic Cleft

The synaptic cleft is the small gap at the junction between neurons, through which neurotransmitters carry signals from one neuron to another.

Axon Terminal

The end part of an axon that makes synaptic connections with another nerve cell or with an effector cell.

Dendrites

Branch-like extensions of neurons that receive signals from other neurons and conduct them toward the cell body.