Which One of the Following Statements About a Stock Purchase

Multiple Choice

Which one of the following statements about a stock purchase is correct?

A) When one purchases a controlling share of stocks in a corporation, all the debts and liabilities that were incurred in the past carries over in the purchase.
B) When one purchases a controlling interest of shares in a corporation, the previously acquired debt and liabilities are not transferred to the new controlling shareholders.
C) When one purchases a controlling interest of shares in a corporation, the debt is shifted to the original shareholders for the debt incurred prior to purchasing a controlling shares.
D) A stock purchase terminates any previously acquired debt by operation of law.