Which One of the Following Statements Is Correct

question 58

Multiple Choice

Which one of the following statements is correct?

• A) If an acquisition is made with cash, then the cost of that acquisition is dependent upon the acquisition gains.
• B) Acquisitions made by exchanging shares of stock are normally taxable transactions.
• C) The management of an acquiring firm may put itself at risk of losing control of the firm if they make acquisitions using shares of stock.
• D) The stockholders of the acquiring firm will be better off when an acquisition results in losses if the acquisition was made with cash rather than with stock.
• E) Acquisitions based on legitimate business purposes are not taxable transactions regardless of the means of financing used.

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Roman Numeral

An ancient system of numbers where letters represent values, used historically for counting and denoting sequences.

Divide

The mathematical operation of partitioning a number into equal parts or groups.

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Chemical substances used to diagnose, treat, prevent, or cure diseases and relieve symptoms in humans or animals.

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