Which of the Following Statements Best Describes the Requirement That

question 17

Multiple Choice

Which of the following statements best describes the requirement that must be met in a tax-deferred Type B stock-for-stock reorganization?

• A) The 40 percent continuity of interest test must be met with respect to the stock transferred from the acquisition corporation to the target shareholders.
• B) The acquiring corporation must hold substantially all of the target's properties after the acquisition.
• C) The target corporation shareholders must receive "solely" voting stock in the acquiring corporation in the exchange.
• D) The target corporation shareholders must receive voting stock in the acquiring corporation in exchange for 80 percent or more of the target corporation stock.

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Definitions:

Achievement Motivation

The drive to pursue and meet (usually high) standards of accomplishment and the desire to undertake success-oriented activities.

Intermediate Difficulty

Refers to tasks or challenges that are of a moderate level of complexity, neither too easy to solve without effort nor too difficult to be solved at all.

Sense of Accomplishment

The feeling of pride and fulfillment that comes from successfully completing a task or challenge.

Achievement Situation

A scenario in which an individual's ability or competence is measured, often invoking performance anxiety or motivation to succeed.