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Some Advantages of Obtaining Control by Acquiring a Controlling Interest

Question 34

Multiple Choice

Some advantages of obtaining control by acquiring a controlling interest in stock include all but:​


A) ​Negotiations are made directly with the acquiree's management.
B) ​The legal liability of each corporation is limited to its own assets.
C) ​The cost may be lower since only a controlling interest in the assets, not the total assets, is acquired.
D) ​Tax advantages may result from preservation of the legal entities.

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