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A Company Wishes to Acquire Control of B Company as Cheaply

Question 16

Multiple Choice

A Company wishes to acquire control of B Company as cheaply as possible.For economic reasons,a consultant recommended that A Inc 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) A Inc 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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