RushNet Inc (RSHN)

[marayatano]

Thanks for the post... This post and this one: http://investorshub.advfn.com/boards/read_msg.asp?message_id=21894213
hand in hand should make it more easier for people to understand the liabilities of purchasing a business.

"Posted by: marayatano
In reply to: Rasica who wrote msg# 36244
Date:8/8/2007 1:10:09 AM
Post #of 36522

I know a lot of the times, a new buyer of a business will change to a new name. Reason: New buyer does not know if seller has any tax issues, i.e franchise tax board in CA, unknown UCCs with the State (CA), unknown debts, etc. Basically what are the libilities, if any. Changing the name would cancel out any unknown debts of the of the seller from the new buyer.

BTW: This is in regards to small businesses. Larger businesses will most likely have finanicals of some sort."

and

"Alex explained to me that when they bought VNET Beverages some years back, that they inherited a MOUNTAIN of troubles along with the Corp. That he said taught them that in the future they NEVER again would buy the corporation that is part of any company they intended to acquire."