Which One of the Following Statements Is Correct

question 20

Multiple Choice

Which one of the following statements is correct?

• A)If an acquisition is made with cash,then the cost of that acquisition is dependent upon the acquisition gains.
• B)Acquisitions made by exchanging shares of stock are normally taxable transactions.
• C)Shareholders of the acquired firm must immediately realize capital gains/losses in a cash acquisition.
• D)Shareholders of the acquired firm are generally indifferent between a cash or a stock transaction.
• E)Acquisitions based on legitimate business purposes are not taxable transactions regardless of the means of financing used.

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Definitions:

Phonetic Learning

The process of learning how to recognize, produce, and manipulate the sounds within a language.

Kohlberg's Theory

A theory of moral development that outlines how individuals progress through different stages of moral reasoning from childhood through adulthood.

Moral Judgments

Evaluations or decisions based on considerations of right and wrong or good and bad behavior.

Social Order

The organized pattern of social relationships and social institutions that together compose society, providing predictability and stability to social life.