Which of the Following Statements Does Not Describe a Requirement

question 120

Multiple Choice

Which of the following statements does not describe a requirement that must be met in a tax-deferred forward triangular merger?

• A)The 40 percent continuity of interest test must be met with respect to the stock transferred from the acquisition corporation to the target corporation shareholders.
• B)The acquirer must hold substantially all of the target corporation's properties after the merger.
• C)The continuity of business enterprise test must be met with respect to the target corporation.
• D)The target corporation shareholders must receive voting stock in the acquiring corporation.

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Definitions:

Corporate Culture

The collective principles, convictions, and habits that form the sociocultural and psychological backdrop of a corporate entity.

Market Domination

When a company or product holds a predominant share of the market in terms of sales or customer loyalty.

Collaboration

The process of two or more people or organizations working together to complete a task or achieve a goal.

New Members

Individuals or entities that have recently joined a group, organization, or community.