Some advantages of obtaining control by acquiring a controlling interest in stock include all but:
A. Negotiations are made directly with the acquiree’s management.
B. The legal liability of each corporation is limited to its own assets.
C. The cost may be lower since only a controlling interest in the assets, not the total assets, is acquired.
D. Tax advantages may result from preservation of the legal entities.
Answer:A
Some advantages of obtaining control by acquiring a controlling interest in stock include all but:
A. Negotiations are made directly with the acquiree’s management. B. The legal liability of each corporation is limited to its own assets. C. The cost may be lower since only a controlling interest in the assets, not the total assets, is acquired. D. Tax advantages may result from preservation of the legal entities.