Jill Is Purchasing a Web Design Company That Has Patented

question 59

Multiple Choice

Jill is purchasing a web design company that has patented a new form of technology.Which purchase would be best for her in relation to the web design company's liabilities?

• A)Buy the firm's assets.
• B)Buy the firm's stock.
• C)Merge the company with her present company.
• D)Any of the above three would be acceptable.

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Definitions:

Accounting Equation

Formula that states that assets must always equal the sum of liabilities and owners’ equity.

FASB

The Financial Accounting Standards Board, an independent organization responsible for establishing accounting and financial reporting standards in the United States.

Accounting Standards

Formal conventions, rules, and guidelines that govern how financial statements are prepared and presented to ensure uniformity and comparability.