Asset based lending is commonly used to finance leveraged buyouts. Which of the following is not true about such financing?
A. The borrower generally pledges tangible assets as collateral.
B. Lenders look at the target firm's assets as their primary protection.
C. Bank loans are secured frequently by receivables and inventory.
D. Loans maturing in more than one year are often referred to as term loans.
E. The target firm's most liquid assets generally secure longer-term loans.
查看答案
Which of the following is generally not true about leveraged buyouts?
A. Borrowed funds are used to pay for all or most of the purchase price, perhaps as much as 90%
B. Tangible assets of the target firm are often used as collateral for loans.
C. Bank loans are often secured by the target firm's intangible assets
D. Secured debt is often referred to as junk bond financing.
E. C and D only
Which of the following is not true of a forward triangular cash merger?
A. It is considered by the IRS as a purchase of target assets.
B. It is generally followed by a liquidation of the target firm.
C. Target shareholders must recognize a gain or loss as if they had sold their shares.
D. The target's tax attributes carry over to the buyer.
E. Taxes are paid by the target firm on any gain on the sale of its assets and again by shareholders who receive a liquidating dividend.
Which of the following is not true of a 338 election ?
A. It applies to asset purchases only.
B. It applies to stock purchases only.
C. It allows a purchase of stock to be treated as an asset purchase for tax purposes.
D. The buyer must adopt the 338 election.
E. The seller must agree with the adoption of the 338 election.
Which of the following is not considered a tax-free reorganization?
A. Type A transactions
B. Type B transactions
C. Type C Transactions
D. Forward triangular merger
E. Cash purchase of assets
微信支付 
支付宝支付