Which of the Following Is Not a Condition That Permits

question 37

Multiple Choice

Which of the following is not a condition that permits a stock redemption to be treated as a sale?

• A)It provides funds for payment of income taxes.
• B)It is not essentially equivalent to a dividend.
• C)The redemption is substantially disproportionate.
• D)The redemption completely terminates the shareholder's interest.

---

Definitions:

Reform

The process of making changes to something in order to improve it, often in the context of social, political, or economic institutions.

Elected Official

An individual who has been chosen through a democratic process to hold a public office.

Constituents

The people represented by elected officials in a particular electoral district or area.

Politically

Pertaining to politics, which is the set of activities associated with the governance of a country or area, especially the debate between parties having power.