Which of the Following Statements Does Not Describe a Motivation

question 71

Multiple Choice

Which of the following statements does not describe a motivation by the buyer or seller in the acquisition or sale of a company?

• A)Buyers generally prefer to buy assets because they can take a tax basis in the assets acquired equal to the assets' fair market value.
• B)Buyers generally prefer to buy stock because they can take a tax basis in the underlying assets of the company acquired equal to the assets' fair market value.
• C)Sellers generally prefer to sell assets in a tax-deferred reorganization to avoid higher tax rates imposed on gains from the sale of noncapital assets.
• D)Sellers generally prefer to sell stock because they can recognize capital gain on the sale taxed at preferential rates.

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Definitions:

Marketing Manager

A professional responsible for developing, implementing, and executing marketing plans for an organization or product, aiming to attract potential customers and retain existing ones.

Net Operating Income

The profit a company makes from its operations, exclusive of taxes and interest, reflecting its core business performance.

Marketing Manager

A professional responsible for overseeing and implementing strategies to promote and sell products or services, including market research and advertising.

Advertising Budget

The amount of money allocated for promoting products or services through various advertising channels within a specific time period.