A Corporation May Accomplish Acquiring All or Substantially All Assets

question 46

Multiple Choice

A corporation may accomplish acquiring all or substantially all assets of another corporation by:

• A) purchase or lease of other corporations' assets.
• B) purchase of a controlling stock interest in other corporations.
• C) merger or consolidation with other corporations.
• D) Any of these are ways that corporations may acquire assets of another corporation.

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Definitions:

Real Rate of Return

The annual percentage return realized on an investment, adjusted for changes in the price level due to inflation or other external effects.

Annual Interest Rate

The percentage of a sum of money charged for its use, calculated on an annual basis.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, hence, eroding purchasing power.

Real Rate of Return

The rate of return on an investment after adjusting for inflation, showing the actual increase in purchasing power.