Which One of the Following Statements Is Correct

question 32

Multiple Choice

Which one of the following statements is correct?

• A)The shareholders of an acquired firm are generally given a choice of accepting either cash or shares of stock when the acquisition is tax-free.
• B)To be a tax-free acquisition, the shareholders of an acquired firm must receive shares in the acquiring firm that are equal to 95 percent or less of the value of the shares held in the acquired firm.
• C)The assets of an acquired firm are recorded on the books of the acquiring firm at their current book value regardless of the tax status of the acquisition.
• D)Target firm shareholders demand a higher selling price when an acquisition is a non-taxable event.
• E)If the assets of a firm are written up as part of the acquisition process, the increase in value is considered to be a taxable gain.

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Definitions:

Locus

The specific physical location of a gene or DNA sequence on a chromosome, critical for genetic identity and inheritance patterns.

Nondisjunction

The failure of chromosomes to separate properly during cell division, leading to cells with abnormal chromosome numbers.

Point Mutation

A genetic mutation where a single nucleotide base is changed, inserted, or deleted from a sequence of DNA or RNA.

Aneuploidy

The presence of an abnormal number of chromosomes in a cell, leading to genetic syndromes like Down syndrome due to an extra chromosome or Turner syndrome due to a missing chromosome.