An acquirer might obtain control of an acquiree in a variety of ways including:
A)by issuing equity securities
B)by incurring liabilities
C)both A and B
D)none of the above

Question

Quizplus · Accepted Answer

An acquirer may obtain control of an acquiree by issuing equity securities or incurring liabilities, as these methods provide the acquirer with the financial resources necessary to acquire the acquiree. Issuing equity securities allows the acquirer to raise funds from investors, while incurring liabilities refers to borrowing money. Both of these options allow the acquirer to increase their assets and resources, which they can then use to obtain control of the acquiree. Therefore, choice C is the best answer.

An Acquirer Might Obtain Control of an Acquiree in a Variety