Biology Forums - Study Force

Which of the following statements is TRUE?

▸ When a firm's assets are acquired, the liabilities are transferred to the vendor.

▸ The purchase of shares must take place soon after the announcement of the intent to merge, thereby minimizing the premium over current market price that has to be paid.

▸ The purchase of a target company's shares as a method of acquiring a firm's assets is attractive when the target company has contingent liabilities outstanding.

▸ With an acquisition, both assets and liabilities are taken over by the new parent.

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