Which of the Following Classes of Stock Is Not Allowed

question 107

Multiple Choice

Which of the following classes of stock is not allowed to be used in a §351 transaction?

• A)Voting common stock
• B)Voting preferred stock
• C)Nonvoting preferred stock
• D)All of these classes of stock can be used in a §351 transaction.

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Definitions:

Factor of Production

An input used in the production of goods and services, including land, labor, capital, and entrepreneurship.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community.

Education and Knowledge

Education and knowledge pertain to the process of acquiring information, skills, values, and understanding through experiences, schooling, and study, which collectively empower individuals and societies.

Factor Distribution

Refers to the way in which income is distributed among the factors of production, typically labor, capital, and land.