The continuity of business enterprise requires that at least 40% of the target's assets are acquired with stock.

Name: The continuity of business enterprise requires that at least 40% of the target's assets are acquired with stock.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is incorrect. The continuity of business enterprise rule requires that at least 70% of the target company's assets (both tangible and intangible) must be acquired with stock in order to preserve the tax benefits of the transaction.

The Continuity of Business Enterprise Requires That at Least 40