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Generally,a Corporation That Purchases the Assets of Another Corporation Is

question 32

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Generally,a corporation that purchases the assets of another corporation is not automatically responsible for the liabilities of the selling corporation.

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Definitions:

Traded Asset

An asset that is bought and sold in financial markets, such as stocks, bonds, commodities, or currencies.

Capital Expenditure

Capital invested by an enterprise in procuring or upgrading solid assets such as land, manufacturing facilities, or hardware.

Equity Account

An account representing the owner's interest in the company, calculated as total assets minus total liabilities.

Intangible Asset

An asset that lacks physical substance, such as copyrights, trademarks, patents, and goodwill.

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