Which of the Following Statements Best Describes the Continuity of Interest

question 39

Multiple Choice

Which of the following statements best describes the continuity of interest principle as it applies to a tax-deferred acquisition?

• A)Continuity of interest requires each shareholder to receive at least 40 percent of the consideration received in equity of the acquirer.
• B)Continuity of interest requires shareholders in the aggregate to receive at least 40 percent of the consideration received in equity of the acquirer.
• C)Continuity of interest requires each shareholder to receive at least 80 percent of the consideration received in equity of the acquirer.
• D)Continuity of interest requires shareholders in the aggregate to receive at least 80 percent of the consideration received in equity of the acquirer.

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Definitions:

Members

Individuals who are part of a group, organization, or body, sharing common interests or goals and often having specific rights or responsibilities.

Stakeholder

An individual, group, or organization that has an interest or concern in an organization or project and can affect or be affected by the organization's actions, objectives, and policies.

Government Policy

The plans and actions taken by a government to achieve certain goals or address specific areas of public concern.

Educational Demands

Educational demands refer to the expectations and requirements placed on students, educators, and educational institutions to achieve certain learning outcomes and performance standards.