1. Give two reasons that a vendor may be prepared to accept a greater risk in exchange for a tax deferral on the sale of a business?

b The sale of business assets by a vendor corporation normally results in two levels of tax, rather than a single level of tax, as in the case when the shares of the business corporation are sold. Explain this statement.

c. Why is it important for the purchaser to establish an accurate value for each individual asset acquired, when a group of business assets are being purchased for an agreed-upon total price?

d. To what extent, if any, should the vendor be concerned about the tax status of the purchaser when contemplating the sale of a business?