Which of the Following Statements Best Describes the Application of the Continuity

question 90

Multiple Choice

Which of the following statements best describes the application of the continuity of enterprise principle to a Type A tax-deferred reorganization?

• A)The continuity of business enterprise principle must be satisfied for both the acquirer and the target corporation.
• B)The continuity of business enterprise principle must be satisfied for only the target corporation.
• C)The continuity of business enterprise principle must be satisfied for only the acquirer.
• D)The continuity of business enterprise principle does not have to be satisfied as long as the business purpose principle is satisfied.

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Definitions:

Benign Prostatic Hyperplasia

A condition in men where the prostate gland is enlarged, leading to discomfort and problems with urination.

Circumcision

A surgical procedure involving the removal of the foreskin from the human penis, often performed for religious or health reasons.

FTA-ABS

Fluorescent treponemal antibody absorption, a blood test used for detecting antibodies to the bacterium Treponema pallidum, the causative agent of syphilis.

Syphilis

A sexually transmitted infection caused by the bacterium Treponema pallidum, characterized by distinct stages and potentially serious long-term symptoms if untreated.