Asked by Laura Cinnamon on Jun 13, 2024
Verified
An acquirer in a business combination can acquire:
A) the assets and liabilities of a business.
B) the issued shares of an acquire company.
C) either A or B.
D) none of the above.
Business Combination
The process of merging or acquiring businesses to create a single entity, often to enhance strategic positioning or market share.
Acquirer
The entity that obtains control of another entity (acquiree) in a business combination, often by purchasing a majority stake.
Liabilities
Financial obligations or debts that an entity is responsible for settling, generally arising from past transactions or events.
- Understand the mechanisms and options for acquiring another business, including the acquisition of assets, liabilities, or issued shares.
Verified Answer
CM
Cammie McAnenyJun 16, 2024
Final Answer :
C
Explanation :
An acquirer in a business combination can acquire either the assets and liabilities of a business or the issued shares of an acquire company. Therefore, choice C is the correct answer. Option A and B are both possible ways for an acquirer to complete a business combination. Option D is incorrect as the acquirer has to acquire either the assets and liabilities or issued shares of an acquire company.
Learning Objectives
- Understand the mechanisms and options for acquiring another business, including the acquisition of assets, liabilities, or issued shares.