Identify Which of the Following Statements Is True

question 68

Multiple Choice

Identify which of the following statements is true.

• A)The control requirement for Sec. 355 differs from the control requirement under Sec. 351.
• B)Aspect Corporation transfers assets to newly created Expert Corporation in exchange for all of Expert's stock. Shortly after the transfer, Aspect exchanges one-half of the Expert stock that it receives for land. The individuals transferring the land have never been Aspect shareholders. This transaction qualifies as a divisive Type D reorganization and is tax-free to all parties.
• C)Common stock can be exchanged for preferred stock in the same corporation as a Type E reorganization.
• D)All of the above are false.

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Definitions:

All-Electric Car

A vehicle that is propelled by one or more electric motors, using energy stored in rechargeable batteries, contributing to reduced carbon emissions.

Greenwashing

A deceptive practice where a company or organization attempts to appear more environmentally friendly or responsible than they actually are.

Environmental Benefits

Positive effects or outcomes on the natural environment resulting from certain actions or policies, such as reduced pollution or conservation of natural resources.

Faux Environmentalism

Faux environmentalism, also known as greenwashing, refers to when companies misleadingly advertise their products or policies as being environmentally friendly, when in reality, their practices may not be sustainable or beneficial to the environment.