Sweet Company acquires all of the assets of Tart Inc. by direct purchase. Approval of the deal between Sweet and Tart is subject to the approval of the shareholders of

Question

Quizplus · Accepted Answer

When one company acquires all the assets of another company by direct purchase, only the shareholders of the company being acquired (in this case, Tart Inc.) need to approve the deal. Sweet Company, as the acquiring company, does not require shareholder approval for the asset purchase.

Sweet Company Acquires All of the Assets of Tart Inc