The Bootstrap Purchase of Assets

question 74

Multiple Choice

The bootstrap purchase of assets:

• A) is a direct purchase of the entire assets of a firm.
• B) means the entrepreneur purchases a small percentage of a firm for cash.
• C) frequently results in a long-term capital gain to the seller.
• D) results in double taxation.

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Definitions:

Elastase

An enzyme that breaks down elastin, an important protein in connective tissue which provides elasticity.

Enzymatic Reaction

A chemical process catalyzed by enzymes, speeding up reactions in the cells.

Reactants

Reactants are substances initially present in a chemical reaction that are consumed during the reaction to form products.

Substrates

In biochemistry, substrates are the specific substances on which an enzyme acts to catalyze a chemical reaction, often converted into products.