When Conrad purchased his business, he purchased it as a total entity.As a result,
A)Conrad got only the liquid assets of the business.
B)Conrad got both liquid assets and the real estate of the business.
C)the seller must pay any outstanding debt held by the business.
D)Conrad assumed responsibility for all outstanding debts incurred by the business.

Question

Quizplus · Accepted Answer

When Conrad purchased the business as a total entity, he assumed responsibility for all the outstanding debts incurred by the business. Therefore, option D is the correct choice. Option A is incorrect because Conrad would have received all the assets of the business, including the non-liquid ones. Option B may or may not be true, as it depends on the specifics of the purchase agreement. Option C is incorrect because in a total entity purchase, the buyer (Conrad) assumes all the debts and liabilities of the business.

When Conrad Purchased His Business, He Purchased It as a Total