What is the difference between a liquidating and, Finance Basics

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What is the difference between a liquidating and

Questions: Up to this point, we have covered the formation and operation of corporations. There are circumstances when a corporation reorganizes or terminates (liquidates).

1. What is the difference between a liquidating and non-liquidating distribution?

2. What are the potential tax consequences for the corporation?

3. How do the potential tax consequences differ for the shareholders?

4. What are the different types of reorganizations and under what situations is one type more appropriate?

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