Identify Which of the Following Statements Is True

question 22

Multiple Choice

Identify which of the following statements is true.

• A)Both a Type B reorganization or a reverse triangular merger will not allow the target corporation to remain in existence.
• B)Andrews Corporation gives 10% of its stock worth $200,000 and Andrews notes worth $10,000 in exchange for 80% of Baxter Corporation's stock. The exchange qualifies as a Type B reorganization.
• C)In a Type B reorganization, with minor exceptions, only voting stock can be used by the acquiring corporation to acquire the target corporation's stock.
• D)All of the above are false.

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Definitions:

Personal Assets

Items of economic value owned by an individual, which can include tangible items like property and vehicles or intangible assets.

Proprietorship

A business structure owned by a single individual where there's no legal distinction between the owner and the business entity.

Legal Dissolution

The process of legally dissolving a company, terminating its existence by the law.

New Partner

An individual who joins an existing partnership, contributing capital, and sharing in profits, losses, and liabilities.