Asked by Fatihah Masri on Jun 26, 2024
Verified
What type of transaction is the deal contemplated by BigCheese and Cheeseland?
A) Purchase of assets.
B) Purchase of stock.
C) Merger.
D) Consolidation.
E) Hostile Takeover.
Purchase of Assets
involves acquiring assets of a company rather than its stock, usually in the context of mergers and acquisitions, focusing on buying specific assets like equipment, inventories, and property.
TradeMarks
Symbols, words, or phrases legally registered or established by use as representing a company or product.
- Grasp the concept of mergers, acquisitions, and the role of board and shareholder approvals in these transactions.
Verified Answer
ZK
Zybrea KnightJul 03, 2024
Final Answer :
A
Explanation :
The deal between BigCheese, Inc., and Cheeseland, Inc., involves BigCheese seeking to purchase Cheeseland's trademarks, logos, factory, and equipment. This is described as a purchase of assets, where one company buys the assets of another company rather than its stock or merging with it.
Learning Objectives
- Grasp the concept of mergers, acquisitions, and the role of board and shareholder approvals in these transactions.
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