Even If Boot Is Generated Under § 357(b) (I

question 72

True/False

Even if boot is generated under § 357(b) (i.e., the liability is not supported by a bona fide business purpose), the transferor shareholder may not have to recognize gain.

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Definitions:

Mechanistic Organization

A highly structured and efficient organization form, characterized by rigid hierarchies, clear roles, and centralized decision-making.

Status Quo

The current status or circumstances, typically used to denote a scenario that has not altered.

Organization Design

The process of shaping an organization's structure and roles to align with its strategy, goals, and culture to enhance efficiency and effectiveness.

Organizational Resistance

Refers to the pushback or opposition by employees or stakeholders within an organization against changes or new policies introduced by management.