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:

Diversity Leadership

The practice of acknowledging, appreciating, and utilizing the diverse backgrounds and perspectives within an organization to drive success.

Inclusive Cultures

An organizational environment that values diversity and integrates practices that respect and accommodate differences among its members.

Creative Potential

The capacity of an individual or organization to generate original and useful ideas or solutions.

Economic Growth

The increase in the inflation-adjusted market value of the goods and services produced by an economy over time.