What is a consequence of an acquisition under corporate law?

The correct choice highlights an important aspect of corporate acquisitions: the transfer of liabilities and assets between the companies involved. When one company acquires another, it typically assumes control over the acquired company's assets, such as property, intellectual property, and inventory. At the same time, it also takes on the liabilities, which can include debts, contractual obligations, and any pending legal issues.

This transfer is a foundational principle in corporate law regarding acquisitions because it defines how the financial and operational responsibilities of the acquired company are integrated into the acquiring company’s structure. The assumption of these liabilities and assets is critical for stakeholders, including investors, creditors, and employees, as it directly impacts the overall financial health and risk profile of the acquiring entity after the acquisition.

In contrast, the other options imply scenarios that do not universally happen as a direct consequence of an acquisition. For instance, a reduction in company valuation may occur under certain circumstances but is not a standard outcome associated with acquisitions. Immediate bankruptcy is also not a typical result of an acquisition; many acquisitions happen as part of a strategic plan to strengthen a company's position rather than to lead to bankruptcy. Similarly, while the acquired company may dissolve after the acquisition in some cases, it is not a universal outcome, especially when the acquired