In an acquisitive “Type D” reorganization, substantially all of the target corpo

Question

In an acquisitive “Type D” reorganization, substantially all of the target corporation’s assets must be transferred to the acquiring corporation for stock amounting to at least 50% of the total acquiring stock.

True

False

In a divisive “Type D” reorganization, the distributing corporation obtains control of the new target by exchanging some of its assets for at least 80% of the new target’s outstanding stock.

True

False

The distinguishing characteristic of a “Type D” reorganization is the acquiring corporation is the one transferring assets to the target corporation in exchange for a controlling interest in the target.

True

False

Explanation / Answer

In an acquisitive “Type D” reorganization, substantially all of the target corporation’s assets must be transferred to the acquiring corporation for stock amounting to at least 50% of the total acquiring stock.

Answer: False

In a divisive “Type D” reorganization, the distributing corporation obtains control of the new target by exchanging some of its assets for at least 80% of the new target’s outstanding stock

Answer :True

The distinguishing characteristic of a “Type D” reorganization is the acquiring corporation is the one transferring assets to the target corporation in exchange for a controlling interest

Answer :True

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