Which of the Following Statements Best Describes the Application of the Continuity

question 75

Multiple Choice

Which of the following statements best describes the application of the continuity of enterprise principle to a Type A tax-deferred reorganization?

• A) The continuity of business enterprise principle must be satisfied for both the acquirer and the target corporation.
• B) The continuity of business enterprise principle must be satisfied for only the target corporation.
• C) The continuity of business enterprise principle must be satisfied for only the acquirer.
• D)The continuity of business enterprise principle does not have to be satisfied as long as the business purpose principle is satisfieD.The COBE test applies to either the historic business or historic business assets of the target corporation.

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Definitions:

Team-based Reward

A system of incentives designed to recognize and reward the collective achievements and contributions of a team towards organizational objectives.

TNC Products

Products marketed or produced by transnational corporations that operate in multiple countries.

Customer Guarantee

A promise made by companies to the buyer to ensure the quality, satisfaction, or performance of a product or service.

Core Disciplines

Fundamental areas of study or practice within a broader field that form the essential skills, knowledge, and expertise of that field.