Which of the Following Statements About Like-Kind Exchanges Is False

question 2

Multiple Choice

Which of the following statements about like-kind exchanges is false?

• A) Like-kind property must be held for either business or investment use.
• B) Businesses cannot engage in like-kind exchanges of inventory.
• C) Businesses cannot engage in like-kind exchanges of intangible assets.
• D) Business cannot exchange undeveloped land for developed real estate.

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Definitions:

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which reflects how a firm finances its overall operations and growth.

Debt Financing

Raising capital through borrowing money to be repaid at a later date, typically with interest.

Financial Risk

The prospect of losing capital in an investment or business venture.

Equity Risk

The risk of loss associated with fluctuations in the stock market or the volatile performance of individual stocks.