Which of the following is one type of business combination purchase?

The purchase of net assets represents a type of business combination that involves acquiring a company's assets and liabilities, as opposed to purchasing shares of the company itself. This type of transaction is often used in mergers and acquisitions where a buyer seeks to acquire specific operational capabilities or resources of another business. By purchasing net assets, the buying entity can gain control over tangible and intangible assets, including cash, accounts receivable, inventory, fixed assets, and possibly contractual obligations or debts.

One of the primary motivations for acquiring net assets is that it allows the purchasing company to selectively assume only those assets and liabilities that are deemed valuable or strategic for its ongoing operations. This can lead to a more streamlined integration process since the buyer can decide which aspects of the acquired business to retain and which to leave behind.

In contrast, purchasing inventory involves the acquisition of stock meant for resale, without gaining a unified control of the business's overall operations. Buying fixed assets pertains solely to tangible resources like machinery or real estate, while the purchase of royalties involves acquiring rights to payments for intangible assets, which is not a complete acquisition of a business's operations. Therefore, the concept of purchasing net assets is most closely aligned with the principles governing business combinations under financial reporting standards.