John Wants to Buy a Business Whose Assets Have Appreciated

question 39

True/False

John wants to buy a business whose assets have appreciated in value. If the business is operated as a C corporation, it does not matter to John whether he purchases the assets or the stock.

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Definitions:

Presentment Warranties

Guarantees made by the presenter of a negotiable instrument that certain facts are true at the time of negotiation.

Altered Instrument

A legal term referring to a document, particularly a negotiable instrument, that has been illegally modified in a way that changes its original terms.

Collateral

Under Article 9 of the Uniform Commercial Code, the property subject to a security interest.

Impair

To weaken or damage something, especially a legal right, financial value, or physical condition.