Purchasing assets provides the buyer with more flexibility versus purchasing shares because the buyer can identify specific productive assets that will be purchased.

Question

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When purchasing shares, the buyer is acquiring ownership in the entire company and does not have control over which specific assets are acquired. However, when purchasing assets, the buyer can target specific productive assets that they believe will generate higher returns and have more control over how those assets are utilized.

Purchasing Assets Provides the Buyer with More Flexibility Versus Purchasing