Final answer:
An asset purchase allows the buyer to select specific assets and potentially exclude certain liabilities from the transaction, which is a significant advantage over stock purchases where all liabilities are inherited alongside ownership stakes.
Step-by-step explanation:
One advantage of acquiring a corporation via an asset purchase instead of a stock purchase is that an asset purchase generally avoids the transfer of the acquired corporation's liabilities. This is true because when you acquire assets, you specifically select which assets and potentially which liabilities you wish to purchase, unlike a stock purchase where you inherently take on all existing liabilities of the corporation since you're buying ownership stakes. This targeted acquisition strategy can protect the purchasing party from unforeseen debts or legal problems associated with the acquired company.
The advantage of acquiring a corporation via an asset purchase instead of a stock purchase is that an asset purchase avoids the transfer of the acquired corporation's liabilities. This means that the buyer of the assets is not responsible for any debts or obligations of the corporation before the acquisition. Only the assets and liabilities specifically transferred in the transaction are acquired, leaving behind any existing liabilities with the selling corporation.