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:

Chronic Obstructive Pulmonary Disease

Conditions affecting the lungs, like emphysema and chronic bronchitis, that result in challenges in breathing.

Barrel Chest

A rounded, bulging chest shape often associated with chronic obstructive pulmonary disease (COPD) and other respiratory conditions.

Common Cold

A viral infectious disease that primarily affects the nose and throat, characterized by coughing, sneezing, and a runny nose.

Influenza

A highly contagious viral infection that attacks the respiratory system, characterized by symptoms like fever, cough, and muscle aches.