If an Acquisition Is Completed Using a Cash Payment, Then

question 48

Multiple Choice

If an acquisition is completed using a cash payment, then the acquisition is

• A)taxable.
• B)viewed as exchanging of shares and is not taxed.
• C)a tax-free transaction as no capital gains or losses are recognized.
• D)None of these options are correct.

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Definitions:

Marginal Cost

The financial outlay involved in producing a supplementary unit of a good or service.

Crude Oil

A naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials, used as a primary energy source.

Industry Output

The total production of goods and services produced by a specific sector of the economy over a given period.

Marginal Cost

The cost incurred from producing one additional unit of a good or service.