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    Mergers Acquisitions Study Set 1
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    Exam 16: Alternative Exit and Restructuring Strategies
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    Parent Firms with a High Tax Basis in a Business
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Parent Firms with a High Tax Basis in a Business

Question 71

Question 71

True/False

Parent firms with a high tax basis in a business may choose to spin-off the unit as a tax-free distribution to shareholders rather than sell the business and incur a substantial tax liability.

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