When Deciding Whether to Purchase the Shares or Assets in Business

question 8

Multiple Choice

When deciding whether to purchase the shares or assets in business acquisitions,which of the following are the three major tax considerations for the purchaser?

• A) Future tax rates, impact on cash flow, potential tax liability after share acquisition if assets are sold
• B) Future tax rates, impact on cash flow, potential tax liability after share acquisition if new assets are purchased
• C) Future interest rates, impact on cash flow, potential tax liability after share acquisition if assets are sold
• D) Future interest rates, impact on cash flow, potential tax liability after share acquisition if new assets are purchased

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Definitions:

Trimester

One of the three parts into which pregnancy is divided, each lasting about three months, used to monitor fetal development and maternal health.

Estimated Date of Confinement (EDC)

The predicted date of a pregnant woman's delivery.

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A medical test that measures the body's ability to metabolize glucose and is used to diagnose diabetes or prediabetes.

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A precancerous change in the layer of cells found on the body's surface or lining internal organs, potentially leading to cancer if left untreated.