Which of the Following Statements Best Describes the Concept of Control

question 35

Multiple Choice

Which of the following statements best describes the concept of control as it applies to a section 351 transaction?

• A)Control is defined as the ownership of 80 percent or more of a corporation's voting stock.
• B)Control is defined as the ownership of 80 percent or more of the fair market value of a corporation's stock.
• C)Control is defined as the ownership of 80 percent or more of a corporation's voting stock and 80 percent or more of the fair market value of a corporation's stock.
• D)Control is defined as the ownership of 80 percent or more of a corporation's voting stock and 80 percent or more of the total number of shares of each class of nonvoting stock.

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Definitions:

Peg-Word

A mnemonic technique that involves associating items in a list with a prearranged set of "peg" words to aid in recall.

Musical Rhyming

The creation of music through the use of rhymes, often found in lyrics, enhancing memorability and aesthetic appeal.

Fan Effect

is a phenomenon observed in cognitive psychology where the time taken to retrieve information from memory increases as the amount of related information increases.

Retrieval

The processes by which stored information is brought back to conscious awareness.