Question

Which of the represent disadvantages of a cash purchase of target stock?

a. Buyer responsible for known and unknown liabilities.

b. Buyer may avoid need to obtain consents to assignments on contracts.

c. NOLs and tax credits pass to the buyer.

d. No state sales transfer, or use taxes have to be paid.

e. Enables circumvention of targets board in the event a hostile takeover is initiated.

Answer

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