Identify Which of the Following Statements Is True

question 68

Multiple Choice

Identify which of the following statements is true.

• A)The control requirement for Sec. 355 differs from the control requirement under Sec. 351.
• B)Aspect Corporation transfers assets to newly created Expert Corporation in exchange for all of Expert's stock. Shortly after the transfer, Aspect exchanges one-half of the Expert stock that it receives for land. The individuals transferring the land have never been Aspect shareholders. This transaction qualifies as a divisive Type D reorganization and is tax-free to all parties.
• C)Common stock can be exchanged for preferred stock in the same corporation as a Type E reorganization.
• D)All of the above are false.

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Definitions:

Bystander Effect

In social psychology, a phenomenon where the probability of a person helping a victim decreases when there are additional witnesses.

Conflict

A battle or confrontation between conflicting forces, concepts, desires, or individuals.

Unarmed People

Individuals who are not carrying or equipped with weapons.

Implicit Bias

The subconscious association, belief, or attitude towards any social group, often influencing behavior without conscious awareness.