Which of the following about an asset purchase merger transaction is/are correct?
I. Only the assets are purchased.
II. The buying firm receives 100% of the assets and incurs only 50% of the liabilities.

Question

Quizplus · Accepted Answer

Statement I is correct as in an asset purchase merger transaction, only the assets are purchased. Statement II is incorrect as the buying firm receives 100% of the assets but incurs 100% of the liabilities as well.

Which of the Following About an Asset Purchase Merger Transaction