In September 1999, Microsoft agreed to buy Visio Corporation for stock valued at $1.26billion. Visio sells a

Question:

In September 1999, Microsoft agreed to buy Visio for stock valued at $1.26billion. Visio sells a popular line of technical drawing software. At the time, Microsoft had $14 billion of cash on its balance sheet. Why might Microsoft pay for the acquisition with its own stock rather than in cash?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...