Asked by Yenifer Medina on Jun 22, 2024
Verified
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.
Dissolution
The process of formally ending or dissolving a company, partnership or any legal entity so it no longer exists as a legal entity.
Merger
The combination of two or more companies into a single entity, often with the goal of achieving greater efficiency, market share, or competitiveness.
Consolidation
The process of combining multiple accounts or businesses into a single entity, often for strategic, financial, or operational efficiency reasons.
- Understand the legal implications of acquiring assets and liabilities in business transactions.
Verified Answer
BN
Brittany NicoleJun 28, 2024
Final Answer :
D
Explanation :
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.
Learning Objectives
- Understand the legal implications of acquiring assets and liabilities in business transactions.