In a Merger,the Acquiring Firm Assumes All Liabilities of the Target

question 89

Multiple Choice

In a merger,the acquiring firm assumes all liabilities of the target firm.Assumed liabilities include all but which of the following?

• A) Current liabilities
• B) Long-term debt
• C) Warranty claims
• D) Fully depreciated operating equipment
• E) Off-balance sheet liabilities

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Definitions:

Interstate Commerce

Trade, traffic, or transportation involving the movement of goods or services from one state to another within the United States.

McCulloch v. Maryland

A landmark Supreme Court case that established federal laws have supremacy over state laws and that Congress has implied powers under the Necessary and Proper Clause.

Necessary and Proper Clause

A provision in the U.S. Constitution granting Congress the power to pass all laws necessary and proper for carrying out its enumerated list of powers.

Delegated Powers

Powers that are granted from one level of government to another, or from a principal to an agent, under the assumption they will be executed in line with certain criteria or objectives.