- CFA Exams
- CFA Level I Exam
- Study Session 8. Corporate Finance (2)
- Reading 23. Mergers and Acquisitions
- Subject 4. Transaction characteristics
CFA Practice Question
In an asset purchase:
II. There are no taxes at the corporate level.
III. Payment is made directly to the target company.
IV. The acquirer assumes the corresponding liabilities of the target company.
I. Shareholder approval is not normally required.
II. There are no taxes at the corporate level.
III. Payment is made directly to the target company.
IV. The acquirer assumes the corresponding liabilities of the target company.
Correct Answer: I and III
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