When a Company Announces That an Executive Is "Leaving to Spend

question 58

Multiple Choice

When a company announces that an executive is "Leaving to spend more time with his family":

• A) It means the executive is retiring.
• B) It means that the executive has a health problem.
• C) It means that the executive is probably leaving for a different reason.
• D) It means that the executive is leaving to spend more time with his family.

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Definitions:

Lineal Descendants

Direct offspring of an individual, such as children, grandchildren, and great-grandchildren.

Involuntary Conversion

A process where an asset or property is replaced or converted into a similar asset or payment, often due to theft, destruction, or condemnation, without the owner's consent.

Like-kind Exchange

A tax deferment on the exchange of real property used for business or investment for another property of like kind.

Boot Received

Cash or other property added to a transaction to even out the exchange, which can have tax implications for the recipient.