The purchasers in an asset acquisition will generally not be held liable for undisclosed liabilities and obligations of the target corporation stemming from prior transactions.

Question

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In an asset acquisition, the buyer typically acquires specific assets and does not automatically assume the liabilities of the seller unless specifically agreed upon, thereby generally not being held liable for undisclosed liabilities and obligations of the target corporation stemming from prior transactions.

The Purchasers in an Asset Acquisition Will Generally Not Be