To Protect Yourself from Unknown Tax Liabilities When Buying the Stock

Multiple Choice

To protect yourself from unknown tax liabilities when buying the stock of a business,it makes sense to place part of the purchase price in an escrow account that is earmarked to pay for any corporate liabilities.This is referred to as

A) Holdback money
B) Thinning the assets
C) Escrow settlement
D) Goodwill