Corporate shells have value because they enable the buyer to
A) Avoid the cost of going public
B) Exploit intangible value such as brand name
C) A and D only
D) Provide limited liability
E) A, B, and D only

Question

Quizplus · Accepted Answer

Choice A is correct because a buyer can acquire a corporate shell without going through the expensive and time-consuming process of conducting an initial public offering (IPO).

Choice B is correct because a corporate shell may have established brand recognition, customer relationships, or other intangible assets that can be leveraged to create value.

Choice D is correct because a corporate shell provides limited liability protection to its owners.

Corporate Shells Have Value Because They Enable the Buyer to