Cash acquisitions have tax-advantages for shareholders of the target company.

Name: Cash acquisitions have tax-advantages for shareholders of the target company.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Cash acquisitions typically result in immediate tax liabilities for shareholders of the target company, as they must pay capital gains tax on the difference between the acquisition price and their original purchase price of the shares.

Cash Acquisitions Have Tax-Advantages for Shareholders of the Target Company