Identify Which of the Following Statements Is False

question 87

Multiple Choice

Identify which of the following statements is false.

• A)When determining the use of an NOL carryover following a change of ownership, the old loss corporation and the new loss corporation may be the same for Sec. 382 purposes.
• B)A new loss corporation that does not continue the business enterprise of the old loss corporation during the two-year period beginning on the date of the stock ownership change cannot use the net operating loss carryover.
• C)One advantage of a tax-free reorganization is that losses realized as part of a tax-free reorganization are not recognized.
• D)For purposes of Sec. 382, ownership changes are tested any time a 5% shareholder has a stock transaction affecting his ownership.

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Definitions:

Corporate Social Responsibility

A business approach that contributes to sustainable development by delivering economic, social, and environmental benefits for all stakeholders.

Economic Power

The capacity of a party (whether a nation, corporation, or individual) to influence or control economic activities, including market forces, production, and financial resources.

Social Power

The ability of an individual or group to influence the behavior, beliefs, or attitudes of others within a social context.

Profit Maximization

The business objective of achieving the highest possible financial gain, commonly through increased sales revenue, cost reduction, or both.