Alpha investments inc offers to buy beta computer


Alpha Investments, Inc., offers to buy Beta Computer Corporation. On May 1, Beta gives Alpha copies of Beta’s financial statements for the previous year. The statements show an inventory of $1 million. On May 15, Beta discovers that the previous year’s inventory is overstated by $500,000, but does not inform Alpha. On June 1, Alpha, relying on the financial statements, buys Beta. On June 10, Alpha discovers the inventory over­statement. Can Alpha succeed in a suit against Beta for fraud?

Request for Solution File

Ask an Expert for Answer!!
Operation Management: Alpha investments inc offers to buy beta computer
Reference No:- TGS01622670

Expected delivery within 24 Hours