Which of the Following Questions Is FALSE

question 8

Multiple Choice

Which of the following questions is FALSE?

• A) The method of payment (cash or stock) affects how the value of the target's assets is recorded for tax purposes and it affects the combined firm's financial statements for financial reporting.
• B) The combined firm must mark up the value assigned to the target's assets on the financial statements by allocating the purchase price to target assets according to their fair market value.
• C) Any goodwill created in a merger deal can be amortized for tax purposes over 15 years.
• D) Many transactions are carried out as acquisitive reorganizations under the tax code. These structures allow the target shareholders to defer their tax liability on the part of the payment made in acquirer stock but they do not allow the acquirer to step up the book value of the target assets.

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Definitions:

Organizational Sale

A complex sales process that involves selling products or services to large organizations rather than individual consumers.

Order-Getters

Salespeople who get new and repeat business using a creative sales strategy and a well-executed sales presentation.

Order-Takers

Employees within a company who are primarily responsible for taking customer orders rather than actively selling or upselling products or services.

Sales Strategy

is a plan of action designed to achieve sales goals and objectives, typically involving techniques for identifying and winning customers.