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| Riley Industries will give the owners of Durable Parts shares of Riley stock in exchange for the outstanding shares of Durable. Which of the following statements regarding a stock purchase is most accurate? A. The shareholders of the target company will not bear any tax consequences associated with the stock purchase; any taxes due are the financial obligation of the acquirer. B. Most stock purchases do not involve purchasing the entire company, but rather a portion of the firm or a specific operating division. C. With a stock purchase, it is the shareholders of the target company that directly receive compensation, not the company itself. |