- CFA Exams
- CFA Level I Exam
- Topic 4. Corporate Issuers
- Learning Module 18. Mergers and Acquisitions
- Subject 4. Merger 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
User Contributed Comments 0
You need to log in first to add your comment.