The Sale of Stock,rather Than Assets,is Generally Preferable to the Target

question 95

True/False

The sale of stock,rather than assets,is generally preferable to the target firm shareholders to avoid double taxation,if the target firm is structured as a limited liability company.

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Definitions:

Externalities

Fiscal aftereffects that influence neutral individuals, having either favorable or adverse effects.

Cost

An amount that must be paid or spent to buy or obtain something, covering expenses such as manufacturing, labor, or materials.

Benefit

The advantage or profit gained from something, often used in the context of weighing costs against benefits in decision-making processes.

Freely Functioning Market

A market where goods and services are traded without any restrictions or interventions from governments.