A Holding Company May Be Used as a Post-Closing Organizational

Multiple Choice

A holding company may be used as a post-closing organizational structure for all but which of the following reasons?

A) A portion of the purchase price for the target firm included an earn-out
B) The target firm has a substantial amount of unknown liabilities
C) The acquired firm's culture is very different from that of the acquiring firm
D) Profits from operations are not taxable
E) The transaction involves a cross border transaction