Which of the Following Principles Does Not Need to Be

question 17

Multiple Choice

Which of the following principles does not need to be satisfied for an acquisition to be a tax-deferred reorganization?

• A)Continuity of interest
• B)Continuity of purpose
• C)Business purpose
• D)Continuity of business enterprise

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Definitions:

Analogous Structures

Features of different species that perform similar functions but have evolved separately, indicating convergent evolution.

Morphological Divergence

The phenomenon where populations or species evolve distinct physical characteristics (morphologies) due to adaptation to different environments or ecological niches.

Cretaceous

The geological period between about 145 and 66 million years ago, the last period of the Mesozoic Era, characterized by the dominance of dinosaurs and the first appearance of flowering plants.

Pleistocene

An epoch of the Quaternary period characterized by several glacial advances, extending from about 2.58 million to 11,700 years ago.