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:

Marketing Messages

Communications intended to persuade or inform potential customers about products, services, or brands.

AIDA Model

A marketing framework that describes the stages of customer engagement: Attention, Interest, Desire, and Action.

Promotional Messages

Communications designed to inform, persuade, and encourage a target audience to take an action.

Conventional Marketing

Traditional marketing strategies that utilize mediums like print, television, and radio advertisements.