Operation Corporation acquires all of the assets of Process Inc. by direct purchase. Operation assumes the liabilities of Process if
A)a court does not impose the liabilities on Operation.
B)the sale does not amount to a merger or a consolidation.
C)Operation replaces Process's personnel without continuing its business.
D)none of the choices.

Question

Quizplus · Accepted Answer

When a corporation acquires all of the assets of another company by direct purchase and assumes its liabilities, the specific conditions listed in options A, B, and C do not determine whether the acquiring company assumes the liabilities. The assumption of liabilities typically depends on the terms of the acquisition agreement, the nature of the liabilities, and applicable laws, rather than the conditions described in the choices.

Operation Corporation Acquires All of the Assets of Process Inc