All of the Following Are Potential Benefits to a Corporation

Multiple Choice

All of the following are potential benefits to a corporation in offering share purchases rather than non-equity compensation except:

A) a share purchase more readily qualifies a merger for a tax-free exchange.
B) a corporation may diminish the perceived dilutive effect of a merger.
C) the shareholders of the acquired firm may defer any capital gains taxes.
D) when the stock is sold,the tax is recognized.