If a Liquidation Qualifies Under § 332, Any Minority Shareholder

question 50

True/False

If a liquidation qualifies under § 332, any minority shareholder will recognize gain (but not loss) equal to the difference between the fair market value of assets received and the basis of the shareholder's stock.

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Definitions:

Puffing

Exaggerated or superlative comments or opinions made by sellers regarding the quality or desirability of their goods, not considered legally binding promises.

UCC

A complete legislative framework, the Uniform Commercial Code, oversees all commercial dealings within the United States.

Negotiate

The process of discussing terms to reach a mutual agreement in transactions, contracts, or disputes.

Implied Warranty

A legal assumption that the goods sold meet certain quality standards, including that they are fit for the standard purposes for which such goods are sold.