Match the Following Items with the Statements Below

question 119

Multiple Choice

Match the following items with the statements below. Terms may be used more than once.
-Jones Corporation is insolvent and under state law protection from its creditors. Its assets are transferred to Smith Corporation in exchange for all of its stock. The stock is distributed to the creditors of Jones, and the shareholders only receive stock valued at 10% of their stock.

• A)Boot
• B)Business credits
• C)Capital gain
• D)Continuity of business enterprise
• E)Continuity of interest
• F)Dividend
• G)Discount rate
• H)Earnings and profits
• I)​Federal long-term tax-exempt rate
• J)Liability assumption
• K)Ordinary gain
• L)Ownership change
• M)Section 382 limitation​
• N)Sound business purpose
• O)Step transaction

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Definitions:

Benchmarking

Selecting a demonstrated standard of performance that represents the very best performance for a process or an activity.

Divisions

Separate sections or branches of an organization, each responsible for specific operations or functions within the larger entity.

American Society For Quality

An organization dedicated to promoting and advancing quality tools, principles, and practices in workplaces and communities around the world.

ISO 9000

A set of quality standards developed by the International Organization for Standardization (ISO).