For each case, state whether it is a business or an acquisition of assets. Then support your answer.

Case 1:
A warehousing company provides shipping and storage services to third parties. A consumer retail company plans to purchase several warehouses from the warehousing company and intends to use the warehouses to enhance its inventory distribution system. The acquired group includes only the land and warehouses. It does not include warehousing contracts with third parties, nor does it include employees, warehouse equipment, or information technology systems, such as inventory- tracking systems.

Required:

Is it a business or an acquisition of assets?

Case 2:
Company P is a television broadcaster whose principal business is the ownership and operation of a television station group in the United States through which it broadcasts its proprietary healthcare- related programming. Company S owns and operates several television stations in the western United States. Because of a recent merger, Company S must divest itself of a station in Nashville, TN (KCRD), and agrees to sell the station to Company P. Company P plans to change KCRD’s programming format to its proprietary healthcare- related programming. Therefore, Company P will receive only the U.S. Federal Communications Commission license, the broadcasting equipment, and the office building. KCRD will be integrated into Company P’s operations, with most of the station processes centralized at Company P’s corporate headquarters. Company P will not extend offers of employment to any of KCRD’s employees or assume any of KCRD’s contractual relationships.

Required:

Is it a business or an acquisition of assets?

Case 3:
P Company acquires a portfolio of 5 single- family homes that all have in- place leases. Each single- family home includes the land, building, and other property improvements. The homes have different floor plans, square footage, lot sizes, and interior design, but they have a similar class of customers. No other elements (e.g., assets, employees) are included in the acquired set.

Required:

Is it a business or an acquisition of assets?