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:

Disparate-Impact

Refers to practices in employment, housing, or other areas that adversely affect one group of people more than another, even if unintentional.

Protected Class

Groups of people legally protected from discrimination on the basis of characteristics such as race, religion, national origin, gender, and more.

Employment Opportunities

Prospects or openings available in the job market for individuals to find work or advance their careers.

At-Will Employment

An employment arrangement where either the employer or the employee can end the employment at any time, for any reason that is not illegal, with or without notice.