Which of the following are true?
A) Taxes are important in any transaction.
B) Taxes should never be the overarching reason for the transaction.
C) Tax savings accruing to the buyer should simply reinforce the decision to acquire.
D) The sale of stock, rather than assets, is generally preferable to the target firm shareholders to avoid double taxation, if the target firm is structured as a C corporation.
E) All of the above.

Question

Quizplus · Accepted Answer

A) Taxes are always a consideration in any transaction as they can impact the financial outcome.
B) While tax implications should not be the only factor in a transaction, they should be considered.
C) Tax savings can provide additional justification for a transaction, but it should not be the sole reason.
D) Selling stock rather than assets may be preferable in certain circumstances to avoid double taxation for C corporations.

Which of the Following Are True