________________, it is impossible for a tax-free acquisition to take place.
A) If an acquisition is for business purposes.
B) If the purchasing firm exchanges its own stock for the selling firm's equity.
C) If an acquisition is being undertaken with cash.
D) If the stockholders in the target firm will retain an equity interest in the bidder.
E) If the selling shareholders will be considered to have exchanged their old shares for new ones of equal value.

Question

Quizplus · Accepted Answer

Tax-free acquisitions typically involve stock swaps where shareholders exchange their shares for shares in the acquiring company, not cash transactions.

________________, It Is Impossible for a Tax-Free Acquisition to Take