[amp_mcq option1=”Shareholder and debenture holder” option2=”Debenture holder and creditor” option3=”Shareholder and creditor” option4=”Shareholder” correct=”option4″]
The correct answer is D. Shareholder.
Purchase consideration is the amount paid by the acquirer to the seller for the acquisition of an asset or a business. In the case of a share acquisition, the purchase consideration is payable to the shareholders of the target company.
The other options are incorrect because:
- Option A is incorrect because debenture holders are not the owners of the company. They are creditors of the company and are entitled to receive interest payments on their debentures.
- Option B is incorrect because creditors are not the owners of the company. They are creditors of the company and are entitled to receive repayment of their loans.
- Option C is incorrect because shareholders and creditors are both entitled to receive payment from the acquirer, but the purchase consideration is payable to the shareholders.