udies Buy the Shares or the Assets? Jane Church, the owner of a corporation, has decided to get out of the glass and mir ror business. She has put the 10 000 company shares up for sale at the very fair price of $750 000 Cynthia Pollock is anxious to purchase the business and has made an offer to Jane for the full asking price. However, her offer is for the assets of the business, not for the shares. She is concerned about the fact that the merchandise inventory of $300 000 is shown on the financial statements at $50 000. Questions 1. What could Jane Church have gained by showing the inventory incorrectly on the financial statements? 2. If the inventory were misrepresented on the financial statements, Cynthia was not responsible for it. Why, then, would she be concerned about it? 3. Why is it to Jane's advantage to sell the shares of the company rather than just the assets? 4. Why is it to Cynthia's advantage to buy the assets of the company and not the shares? Control of a Cornoration