If a Target Company in an Acquisition Has Operating Loss

question 79

True/False

If a target company in an acquisition has operating loss carry-forwards that cannot be fully utilized, the acquiring company can use them to reduce the tax bill of the combined firm.

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Definitions:

Official Statistics

Quantitative data collected and published by government agencies or other official organizations, often used for demographic, economic, and social analysis.

Statistically Significant

A term used to describe a result that is unlikely to have occurred by chance, indicating a meaningful difference or relationship in data.

Researchers

Individuals who conduct systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.

Population

The total number of people inhabiting a specific area or the whole planet, characterized by factors such as density, distribution, and growth rate.