Hazel Transferred the Following Assets to Starling Corporation

question 47

Multiple Choice

Hazel transferred the following assets to Starling Corporation. In exchange, Hazel received 50% of Starling Corporation's only class of stock outstanding. The stock has no established value. However, all parties believe that the value of the stock Hazel received is the equivalent of the value of the assets she transferred. The only other shareholder, Rick, formed Starling Corporation five years ago.

• A) Hazel has no gain or loss on the transfer.
• B) Starling Corporation has a basis of $48,000 in the machinery and $108,000 in the land.
• C) Starling Corporation has a basis of $36,000 in the machinery and $144,000 in the land.
• D) Hazel has a basis of $276,000 in the stock of Starling Corporation.
• E) None of the above.

Identify organizational structures' implications on centralization, complexity, and the number of authority levels.

Understand the relationship between organizational size and its structural tendencies (centralization, formalization, spans of control).

Analyze the impact of organizational structure on decision-making processes.

Distinguish between the theoretical perspectives of classical and human relations theorists on organizational structures.

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Definitions:

Selective Attention

The ability to focus on relevant stimuli and ignore others.

Forehead

The part of the face above the eyebrows and below the hairline.

Wrinkles

Lines, creases, or folds in the skin, often resulting from aging, sun damage, or facial expressions.

Isometric Strength

Subtle contractions in which the length of the muscle does not change; is maintained through adulthood.