For a Corporate Restructuring to Qualify as a Tax-Free Reorganization

question 13

True/False

For a corporate restructuring to qualify as a tax-free reorganization, the transaction must have a sound business purpose.

---

Definitions:

Prescription

An authorization given by a licensed healthcare professional that allows a patient to be provided with a medicine or treatment.

Narcotic

Substances that change mood or behavior and can potentially lead to dependence or abuse; often used for pain relief.

Ointment

A semi-solid preparation typically used topically for the delivery of medication or for protective, therapeutic, or cosmetic purposes.

Parenteral

Other than by mouth.