Which of the Following Are Required for an Acquisition to Be

question 17

Multiple Choice

Which of the following are required for an acquisition to be considered tax-free?

• A) Continuity of interest
• B) A legitimate business purpose other than tax avoidance
• C) The use of predominately acquirer shares to buy the target's shares
• D) An all cash acquisition of the target firm's shares
• E) A, B, and C only

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Definitions:

Implement

To carry out, execute, or apply a method or interface in programming, converting design into actual code.

Multiple Inheritance

A feature of some object-oriented programming languages where a class can inherit behaviors and attributes from more than one parent class.

Inner Classes

Classes defined within another class, useful for encapsulating helper classes tightly bound to their parent class.

Outer Class

An outer class refers to a class that is not nested within another class. It can be contrasted with inner classes.