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Company a Wishes to Acquire Control of Company B's Business

Question 46

Multiple Choice

Company A wishes to acquire control of Company B's business. A consultant recommended that Company A can do this through a purchase of assets rather than a purchase of shares. Which of the following statements regarding the above scenario is correct?


A) Company A needs to purchase all of Company B's assets and assume all of its liabilities.
B) Company A only needs to acquire the assets of Company B that it needs to enhance its business operations.
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.

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