Which of the Following Statements Best Describes the Concept of Control

question 35

Multiple Choice

Which of the following statements best describes the concept of control as it applies to a section 351 transaction?

• A)Control is defined as the ownership of 80 percent or more of a corporation's voting stock.
• B)Control is defined as the ownership of 80 percent or more of the fair market value of a corporation's stock.
• C)Control is defined as the ownership of 80 percent or more of a corporation's voting stock and 80 percent or more of the fair market value of a corporation's stock.
• D)Control is defined as the ownership of 80 percent or more of a corporation's voting stock and 80 percent or more of the total number of shares of each class of nonvoting stock.

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Definitions:

Sample

A part of a population selected for measurement, observation, or questioning to provide information about the whole.

Population Frame

A complete list of all the items or individuals in the population to be studied, from which a sample is drawn for research.

Sampling Theory

A field of study concerned with the selection of individual observations intended to yield some knowledge about a population, especially for the purposes of statistical inference.

Participant Selection

The process of choosing individuals to take part in a research study based on certain criteria.