When considering an acquisition,which of the following is NOT a method by which one company may gain control of another company?
A)Purchase of the majority of outstanding voting stock of the acquired company.
B)Purchase of all assets and liabilities of another company.
C)Purchase of all the outstanding voting stock of the acquired company.
D)Purchase of 25% of outstanding voting stock of the acquired company.

Question

Quizplus · Accepted Answer

Purchasing only 25% of the outstanding voting stock of the acquired company may not grant enough control to the acquiring company to make significant management decisions or changes. The other options (A, B, and C) all involve ways in which an acquiring company may gain control of another company through purchasing either a majority or all of the outstanding voting stock or assets and liabilities.

When Considering an Acquisition,which of the Following Is NOT a Method