Solved

Company a Wishes to Acquire Control of Company B as Cheaply

Question 8

Multiple Choice

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


A) Company A must purchase all of Company B's assets and liabilities.
B) Company A only needs to acquire control of Company B's net assets.
C) Company A only needs to acquire control of Company B's fixed assets.
D) The consideration given by Company A must exceed 50% of the fair market value of Company B's net assets.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions