Concerning business continuation agreement

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Reference no: EM131920785

1) Gina owns an office building in which she conducts her accounting practice. She is considering selling the building to a trust and leasing it back. This sale/leaseback would have all of the following benefits for Gina except?

a. Off balance sheet financing.

b. Avoidance of tax on gain from sale of the asset.

c. Improved cash flow.

d. Removal of future growth from Gina's estate.

2) Which of the following is not true concerning a business continuation agreement?

a. If the agreement is a stock redemption or cross purchase plan, the agreement may be oral.

b. The business continuation agreement must specify which event(s) will trigger the obligations of the parties.

c. The agreement may contain provisions related to the funding of the agreement.

d. The agreement binds the estate of the business owner to sell the business interest to another party.

Reference no: EM131920785

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