In a Tax-Free Acquisition,the Shareholders of the Target Firm

question 23

Multiple Choice

In a tax-free acquisition,the shareholders of the target firm:

• A)receive income which is considered to be tax-exempt.
• B)gift their shares to a tax-exempt organization and therefore have no taxable gain.
• C)are viewed as having exchanged shares on a dollar-for-dollar basis.
• D)sell their shares to a qualifying entity thereby avoiding both income and capital gains taxes.
• E)sell their shares at cost thereby avoiding the capital gains tax.

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Definitions:

Talkativeness

The quality or state of being inclined to talk a lot or engage in conversation frequently.

Facets of Generalizability

Aspects related to the extent to which the findings from a study or research can be applied or generalized to other settings, populations, or times.

Informant Report

Information provided by a knowledgeable third party about another individual’s behavior, characteristics, or symptoms, often used in psychological assessments.

Face Validity

The extent to which a test appears to measure what it is supposed to measure, based on a superficial assessment, rather than in-depth analysis.