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Company a Wishes to Acquire Control of Company B as Cheaply

Question 46

Multiple Choice

Company A wishes to acquire control of Company B as cheaply as possible. For economic reasons, a consultant recommended that if Company A do this through purchase of assets, rather than purchase of shares. Which of the following statements regarding the above scenario is correct?


A) A must purchase all of B's assets and liabilities.
B) A only needs to acquire control of B's net assets.
C) A only needs to acquire control of B's fixed assets.
D) The consideration given by A must exceed 50% of the Fair Market Value of B's Net Assets.

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