Which one of the following statements is incorrect?
- In an asset acquisition, the books of the acquired company are closed out, and its assets and liabilities are transferred to the books of the acquirer.
- In many cases, stock acquisitions entail lower total cost than asset acquisitions.
- Regulations pertaining to one of the firms do not automatically extend to the entire merged entity in a stock acquisition.
- A stock acquisition occurs when one corporation pays cash, issues stock, or issues debt for all or part of the voting stock of another company; and the acquired company dissolves and ceases to exist as a separate legal entity.