As Part of a Share Repurchase Program, a Tender Offer

question 94

Multiple Choice

As part of a share repurchase program, a tender offer involves the:

• A)purchase of stock on the open market.
• B)purchase of stock directly from its stockholders.
• C)private negotiation of purchases from large institutions.
• D)a and b

---

Definitions:

Tax Preferences

Certain types of income or deductions that receive preferential tax treatment, affecting the calculation of alternative minimum tax (AMT).

Passive Activities

Economic engagements, such as rental activities or businesses in which the taxpayer does not actively participate, often with specific tax rules.

Passive Losses

Losses incurred from business activities in which the taxpayer does not materially participate, often from real estate.

Partnership

A legal arrangement in which two or more people share ownership of a business, including its profits, losses, and responsibilities.