Identify which of the following statements is true.
A) Per IRS Treasury Regulations, to qualify as a Type A reorganization, at least 40% of the total consideration used must be acquiring corporation stock.
B) A Type A reorganization has the advantage of avoiding the acquisition of unknown and contingent liabilities.
C) A merger usually involves the approval of all of the shareholders of both corporations.
D) All of the above are false.
A) Per IRS Treasury Regulations, to qualify as a Type A reorganization, at least 40% of the total consideration used must be acquiring corporation stock.
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Noerr doctrine is guaranteed by the Bill of Rights
Indicate whether the statement is true or false
Which of the following is a disadvantage of a general partnership?
A) The control of a partnership is skewed in favor of the partner who invests most capital. B) Partnerships do not have perpetual existence. C) Both a partnership and its individual partners are taxed separately. D) The partnership agreement does not allow partners to leave the business.
Which of the following is NOT true regarding limited partnerships?
a. General partners of a limited partnership remain jointly and severally liable for partnership obligations. b. Limited partners assume no liability for partnership debts beyond the amount of capital they contributed. c. Limited partners are responsible for the management of the partnership. d. Limited partnerships are often used to raise capital.
Your portfolio consists of $50,000 invested in Stock X and $50,000 invested in Stock Y. Both stocks have an expected return of 15%, betas of 1.6, and standard deviations of 30%. The returns of the two stocks are independent, so the correlation coefficient between them, rXY, is zero. Which of the following statements best describes the characteristics of your 2-stock portfolio?
A. Your portfolio has a standard deviation of 30%, and its expected return is 15%. B. Your portfolio has a standard deviation less than 30%, and its beta is greater than 1.6. C. Your portfolio has a beta equal to 1.6, and its expected return is 15%. D. Your portfolio has a beta greater than 1.6, and its expected return is greater than 15%. E. Your portfolio has a standard deviation greater than 30% and a beta equal to 1.6.