Asked by Lucky Baloyi on Jul 08, 2024
Verified
If Marco Corporation purchases all of the stock of Polo Corporation rather than all of its assets, there is no change in Polo Corporation's legal status.
Legal Status
Refers to the lawful standing of an entity or individual, determining their rights, duties, and liabilities under the law.
- Differentiate between purchasing a company's stock vs. its assets and the legal implications.
Verified Answer
MW
Marita WalkerJul 11, 2024
Final Answer :
True
Explanation :
When a company purchases all the stock of another company, the target company (Polo Corporation, in this case) remains a separate legal entity; only its ownership changes.
Learning Objectives
- Differentiate between purchasing a company's stock vs. its assets and the legal implications.