A holding company may be used as a post-closing organizational structure for all but which...

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Accounting

A holding company may be used as a post-closing organizational structure for all but which of the following reasons?

  1. A portion of the purchase price for the target firm included an earn-out
  2. The target firm has a substantial amount of unknown liabilities
  3. The acquired firms culture is very different from that of the acquiring firm
  4. Profits from operations are not taxable
  5. The transaction involves a cross border transaction

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