Which of the Following Principles Does Not Need to Be

question 17

Multiple Choice

Which of the following principles does not need to be satisfied for an acquisition to be a tax-deferred reorganization?

• A)Continuity of interest
• B)Continuity of purpose
• C)Business purpose
• D)Continuity of business enterprise

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Definitions:

Rental Apartments

Housing units that are available for rent, typically within a larger building or complex, offering living accommodation to tenants.

Equilibrium Price

The price at which the quantity of a good or service supplied equals the quantity demanded, resulting in market balance.

Equilibrium

A state in a market or economy where supply equals demand, and there is no incentive for change under current conditions.

Coconuts

Often used in economic models and examples, referring to a simplistic commodity to illustrate principles of trade, investment, or resource allocation.