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

question 90

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.

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Definitions:

Bloodstream

The flow of blood within the circulatory system of the body, transporting nutrients, oxygen, and waste products to and from tissues.

Glands

Specialized organs in the body that secrete hormones directly into the blood or tissues, playing vital roles in various physiological functions.

Patriarchal Societies

Social systems in which men hold primary power and predominate in roles of political leadership, moral authority, social privilege, and control of property.

Matriarchal Societies

Communities or societies where power and inheritance are passed through the female line, and women hold primary positions of authority.