Jill is purchasing a web design company that has patented a new form of technology. Which of the following options 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 three would be acceptable.

Question

Quizplus · Accepted Answer

By buying the firm's assets, Jill can limit her liability to only those assets purchased. This would protect her from any potential liabilities that the web design company may have. Buying the firm's stock or merging with her present company could potentially expose her to the liabilities of the web design company.

Jill Is Purchasing a Web Design Company That Has Patented