When One Company Acquires Another Company It May Not Be

question 14

Short Answer

When one company acquires another company it may not be able to estimate the potential losses inherent in the acquired assets or the potential liability of the acquired company,for these reasons the acquirer may establish ________________________________________.

---

Definitions:

Voluntary Agreement

A mutual consent or contract between parties, typically concerning legal obligations and enforcements.

Offer

A proposal presented by one party to another with the intention to enter into a legally binding contract upon acceptance.

Acceptance

The actual or implied receipt and retention of that which is tendered or offered.

Understanding

The internal process of interpreting and comprehending information, concepts, or situations.