As part of a "C" reorganization, the target corporation must liquidate by distributing solely the stock and securities of the acquiring corporation.

Question

Quizplus · Accepted Answer

In a "C" reorganization, the target corporation typically transfers its assets to the acquiring corporation in exchange for stock or other securities. The target corporation does not necessarily have to liquidate, and there is no requirement that the distribution only consist of the stock and securities of the acquiring corporation.

As Part of a "C" Reorganization, the Target Corporation Must