The Purchase of Substantially Less Than 100 Percent of a Business

question 29

Multiple Choice

The purchase of substantially less than 100 percent of a business is called a

• A)takeover.
• B)buy-in.
• C)spin-off.
• D)buyout.

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Definitions:

Implied-In-Law Contracts

Implied-in-law contracts, also known as quasi-contracts, are contracts recognized by a court despite there being no agreement between the parties, to prevent unjust enrichment.

Unjust Enrichment

A legal principle that prohibits one person from being enriched at the expense of another in situations where the law demands restitution.

Contract

A legally binding agreement between two or more parties that outlines the terms and conditions of their arrangement and obligates them to comply with those terms.

Promises

Commitments or assurances by one party to another that certain actions will or will not be undertaken.