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Hurricane Inc.wants to acquire 100% of the net assets of Flood Inc.using all cash consideration.From the Flood's shareholders' point of view,what are the advantages and disadvantages of Hurricane purchasing shares rather than net assets of Flood?
Land
A real estate property consisting of the earth's surface, along with any attached natural resources and rights.
Disposal of Asset
The process of selling, scrapping, or otherwise removing an asset from a company's balance sheet, often due to obsolescence, surplus, or a strategic shift.
Note Payable-State Bank
A debt obligation in the form of a written promissory note made to a state bank, specifying the terms under which repayment will be made.
Collateralized Borrowing
Obtaining a loan by pledging an asset as security for the loan, which the lender can seize if the borrower defaults.
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