Identify the advantages of acquiring the major voting shares of another company rather than acquiring the complete voting shares.

Question

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Answer 1

Question

Chapter 3, Problem 1Q

To determine

Identify the advantages of acquiring the major voting shares of another company rather than acquiring the complete voting shares.

Expert Solution & Answer

Explanation of Solution

The advantages of acquiring majority of acquiring the major voting shares are:

This shall avoid the complex process required to take over the complete stock.
Acquiring more than 50% of the shares provides effective control; thus there is no need for greater investment.
The legal existence of an individual affiliate protects the assets of the parent company from attachment by the subsidiary’s creditors.

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Answer 2

Question

Chapter 3, Problem 1Q

To determine

Identify the advantages of acquiring the major voting shares of another company rather than acquiring the complete voting shares.

Expert Solution & Answer

Explanation of Solution

The advantages of acquiring majority of acquiring the major voting shares are:

This shall avoid the complex process required to take over the complete stock.
Acquiring more than 50% of the shares provides effective control; thus there is no need for greater investment.
The legal existence of an individual affiliate protects the assets of the parent company from attachment by the subsidiary’s creditors.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 3, Problem 1Q

To determine

Identify the advantages of acquiring the major voting shares of another company rather than acquiring the complete voting shares.

Expert Solution & Answer

Explanation of Solution

The advantages of acquiring majority of acquiring the major voting shares are:

This shall avoid the complex process required to take over the complete stock.
Acquiring more than 50% of the shares provides effective control; thus there is no need for greater investment.
The legal existence of an individual affiliate protects the assets of the parent company from attachment by the subsidiary’s creditors.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 3, Problem 1Q

To determine

Identify the advantages of acquiring the major voting shares of another company rather than acquiring the complete voting shares.

Expert Solution & Answer

Explanation of Solution

The advantages of acquiring majority of acquiring the major voting shares are:

This shall avoid the complex process required to take over the complete stock.
Acquiring more than 50% of the shares provides effective control; thus there is no need for greater investment.
The legal existence of an individual affiliate protects the assets of the parent company from attachment by the subsidiary’s creditors.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 3, Problem 1Q

To determine

Identify the advantages of acquiring the major voting shares of another company rather than acquiring the complete voting shares.

Expert Solution & Answer

Explanation of Solution

The advantages of acquiring majority of acquiring the major voting shares are:

This shall avoid the complex process required to take over the complete stock.
Acquiring more than 50% of the shares provides effective control; thus there is no need for greater investment.
The legal existence of an individual affiliate protects the assets of the parent company from attachment by the subsidiary’s creditors.

Answer 6

Chapter 3, Problem 1Q

To determine

Identify the advantages of acquiring the major voting shares of another company rather than acquiring the complete voting shares.

Expert Solution & Answer

Explanation of Solution

The advantages of acquiring majority of acquiring the major voting shares are:

This shall avoid the complex process required to take over the complete stock.
Acquiring more than 50% of the shares provides effective control; thus there is no need for greater investment.
The legal existence of an individual affiliate protects the assets of the parent company from attachment by the subsidiary’s creditors.

Answer 7

Chapter 3, Problem 1Q

To determine

Identify the advantages of acquiring the major voting shares of another company rather than acquiring the complete voting shares.

Answer 8

Expert Solution & Answer

Explanation of Solution

The advantages of acquiring majority of acquiring the major voting shares are:

This shall avoid the complex process required to take over the complete stock.
Acquiring more than 50% of the shares provides effective control; thus there is no need for greater investment.
The legal existence of an individual affiliate protects the assets of the parent company from attachment by the subsidiary’s creditors.