Some advantages of obtaining control by acquiring a controlling interest in stock but: The cost may be lower since only a controlling interest in the assets, not the total assets, is acquired. The legal liability of each corporation is limited to its own assets. O Negotiations are made directly with the acquiree's management. O Tax advantages may result from preservation of the legal entities.
Some advantages of obtaining control by acquiring a controlling interest in stock but: The cost may be lower since only a controlling interest in the assets, not the total assets, is acquired. The legal liability of each corporation is limited to its own assets. O Negotiations are made directly with the acquiree's management. O Tax advantages may result from preservation of the legal entities.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Some advantages of obtaining control by acquiring a controlling interest in stock include all
but:
O The cost may be lower since only a controlling interest in the assets, not the total assets, is acquired.
O The legal liability of each corporation is limited to its own assets.
O Negotiations are made directly with the acquiree's management.
O Tax advantages may result from preservation of the legal entities.
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