_____A reason for acquiring assets versus acquiring common stock is that
A) Acquiring assets is much simpler.
B) Acquiring assets does not require approval by the target company's
Board of directiors.
C) The acquiring company can avoid inheriting contingent liabilities of the target company.
D) By acquiring assets, a statutory consolidation can later be effected.
E) None of the above.

Question

Quizplus · Accepted Answer

Acquiring assets allows the acquiring company to specifically select which assets to purchase and which liabilities to assume, thereby avoiding inheriting contingent liabilities that might exist if the entire company (including its stock) were acquired.

_____A Reason for Acquiring Assets Versus Acquiring Common Stock Is