Operation Corporation Acquires All of the Assets of Process Inc

question 26

Multiple Choice

Operation Corporation acquires all of the assets of Process Inc. by direct purchase. Operation assumes the liabilities of Process if

• A)a court does not impose the liabilities on Operation.
• B)the sale does not amount to a merger or a consolidation.
• C)Operation replaces Process's personnel without continuing its business.
• D)none of the choices.

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Definitions:

Government Securities

Financial instruments issued by a government to finance its expenditures, including bonds, bills, and notes.

Commercial Banking System

A network of financial institutions that accept deposits, offer loans, and provide other financial services to the public and businesses.

Deposits with the Fed

Funds that commercial banks and other financial institutions place in their accounts with the Federal Reserve.

U.S. Government Securities

Financial instruments issued by the U.S. government to raise funds, including Treasury bonds, bills, and notes, considered low-risk investments.