A Corporation That Buys the Assets of Another Corporation Does

question 10

Multiple Choice

A corporation that buys the assets of another corporation does not assume the other's liability unless the:

• A) purchaser,expressly or impliedly,agrees to assume the seller's liabilities.
• B) transaction amounts to a consolidation or merger of the two corporations.
• C) sale is for the fraudulent purpose of avoiding the liabilities of the seller.
• D) All of these.

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Definitions:

Value-Based Pricing

A pricing strategy where the price of a product or service is determined primarily by the perceived value to the customer rather than the cost of production.

Useful Life

The expected period of time during which an asset is useful to the owner for the purpose for which it was acquired, often impacting depreciation calculations.

Preventive Maintenance

Scheduled maintenance activities aimed at preventing unexpected equipment failures and prolonging the life of the equipment.

Economic Value

The measure of the benefit provided by a good or service to an economic agent, often represented in terms of willingness to pay for it.