Ontario Barrister and Solicitor Practice Exam

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Study for the Ontario Barrister and Solicitor Exam. Quiz with flashcards and multiple choice questions, each with hints and explanations. Prepare for your legal career!

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What is a difference between an asset acquisition and a share acquisition?

  1. Share acquisition requires more paperwork

  2. Asset acquisition automatically transfers employees

  3. Asset acquisition may disturb existing pension plans

  4. Share acquisition is faster to process

The correct answer is: Asset acquisition may disturb existing pension plans

Asset acquisition may disturb existing pension plans because when a company acquires assets from another company, it does not take on the liabilities of the previous company, including pension plans. This can potentially leave employees of the acquired company without their existing pension plans. Option A and D are incorrect because paperwork and processing times can vary in both asset and share acquisitions. Option B is incorrect because employees may or may not be automatically transferred in both types of acquisitions depending on the terms of the deal.

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