Which of the Following Statements Best Describes the Application of the Continuity

question 90

Multiple Choice

Which of the following statements best describes the application of the continuity of enterprise principle to a Type A tax-deferred reorganization?

• A)The continuity of business enterprise principle must be satisfied for both the acquirer and the target corporation.
• B)The continuity of business enterprise principle must be satisfied for only the target corporation.
• C)The continuity of business enterprise principle must be satisfied for only the acquirer.
• D)The continuity of business enterprise principle does not have to be satisfied as long as the business purpose principle is satisfied.

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Definitions:

Borderline Personality Disorder

A mental health condition characterized by unstable moods, behavior, and relationships, often resulting from a pattern of intense emotional experiences.

Narcissistic Personality Disorder

Syndrome marked by grandiose thoughts and feelings of one’s own worth as well as an obliviousness to others’ needs and an exploitative, arrogant demeanor.

Childhood

The period of life from birth until adolescence, encompassing physical, cognitive, and emotional development.

Narcissistic Personality Disorder

A mental condition characterized by a long-term pattern of exaggerated self-importance, need for excessive attention and admiration, and a lack of empathy for others.