Jill is purchasing a web design company that has patented a new form of technology.Which purchase would be best for her in relation to the web design company's liabilities?
A)Buy the firm's assets.
B)Buy the firm's stock.
C)Merge the company with her present company.
D)Any of the above three would be acceptable.

Question

Quizplus · Accepted Answer

By buying the firm's assets, Jill will acquire the patented technology but not the liabilities of the company. This will allow her to take advantage of the new technology without being responsible for any potential legal or financial liabilities of the previous owners. Buying the stock or merging with the company would mean inheriting all of the company's liabilities.

Jill Is Purchasing a Web Design Company That Has Patented