Which of the Following Statements Most Accurately Describes an Aspect

Which of the following statements most accurately describes an aspect of a tax-deferred sale of a business to a group of employees, through share reorganization?

A) The employees will purchase the corporation's original common shares from the vendor.
B) There is a risk to the original shareholder, as the value of their preferred shares following the reorganization depends on the future success of the corporation.
C) This method of sale is appropriate when the vendor is unsure of the purchaser's ability to manage the business.
D) The vendor generally does not participate in the financing of the sale of the business.