The Sec 338 Deemed Sale Rules Require That 70% of the the Target

question 76

True/False

The Sec. 338 deemed sale rules require that 70% of the target corporation's stock be owned.

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Definitions:

Economies of Scale

Enterprises achieve cost benefits from their operation size, resulting in a reduction of cost per output unit as the scale expands.

Average Variable Cost

The total variable costs divided by the quantity of output produced; it fluctuates with production volume.

Line Segment AB

A part of a line that is bounded by two distinct end points, A and B, and contains every point on the line between A and B.

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional item changes with increased production.