The Major Advantages of Using a Triangular Structure Are Limitations

question 45

True/False

The major advantages of using a triangular structure are limitations of the voting rights of acquiring shareholders and that the acquirer gains control of the target through a subsidiary without being directly responsible for the target's known and unknown liabilities.

---

Definitions:

Balance Sheet

A business's financial report that lists its holdings, obligations, and the value belonging to its shareholders at a specific time.

Subclassifications

Refers to the further division of items within a classification into more detailed categories to provide in-depth insights.

Contributed Capital

Equity that has been provided to a company by its shareholders through the purchase of stock.

Retained Earnings

The portion of a company's profits that is retained and not distributed to shareholders, often reinvested in the business or used to pay off debt.