Spin-Offs Are Not Taxed If the Shareholders of the Parent

question 58

Multiple Choice

Spin-offs are not taxed if the shareholders of the parent company are given at least:

• A)90% of the shares in the new company.
• B)80% of the shares in the new company.
• C)70% of the shares in the new company.
• D)60% of the shares in the new company.

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Definitions:

Return Component

An element of a system or device that is designated to be sent back to the manufacturer or repair center for refurbishment, repair, or recycling.

SCM

Supply Chain Management (SCM) is the oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer.

Inventory

Inventory refers to the total amount of goods and materials held in stock by a business, warehouse, or storage facility.

Goods And Services

Goods and services are the products and activities that satisfy human wants; goods are physical items, while services are non-tangible activities or benefits.