In the fifth line the question says that Pursuit Co also pay off any outstanding debt that Fodder Co owed.
What does it mean? Just a company acquiring another company is buying by paying its value plus premium. How can it pay loans? If it pays loans then it will give less cash to Fodder Co, isnt it?
ACCA Forums
AFM2011 June, Q1 PURSUIT
10y ago#1If you take over a company you pay money to the shareholders in the company and take over all the assets and liabilities of the company (unless you have made a special other agreement).
So you are now responsible for all the liabilities!
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