Which of the following statements regarding the applicability of the judicial doctrines to a "Type G" reorganization is correct?
A)The continuity of interest doctrine is applied to the creditors rather than the shareholders.
B)The sound business purpose doctrine does not apply because the restructuring is dictated by state proceedings.
C)The continuity of business enterprise doctrine does not apply because the transaction is a bankruptcy.
D)The step transaction doctrine presents a problem, because a "Type G" reorganization make take an extended period of time to complete.
E)All of the above.

Question

Quizplus · Accepted Answer

The continuity of interest doctrine is applied to the creditors rather than the shareholders in a "Type G" reorganization, as it typically involves bankruptcy or insolvency proceedings where creditors' interests are prioritized.

Which of the Following Statements Regarding the Applicability of the Judicial