Identify Which of the Following Statements Is True

question 49

Multiple Choice

Identify which of the following statements is true.

• A)Per IRS Treasury Regulations, to qualify as a Type A reorganization, at least 40% of the total consideration used must be acquiring corporation stock.
• B)A Type A reorganization has the advantage of avoiding the acquisition of unknown and contingent liabilities.
• C)A merger usually involves the approval of all of the shareholders of both corporations.
• D)All of the above are false.

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Definitions:

Labor

The combined physical and mental exertion employed in creating goods and services.

Marginal Physical Product

The change in total physical output that results from a one-unit increase in the quantity of one input, holding other inputs constant.

Marginal Revenue Product

The extra income derived from the use of an additional unit of a resource or input in production.

Input

Resources such as labor, materials, and capital that are used in the production process to create goods and services.