Question
16- Which of the following statements is true regarding a statutory merger? A- The acquiring company acquires the stock of the acquired company as an
16- Which of the following statements is true regarding a statutory merger?
A- The acquiring company acquires the stock of the acquired company as an investment.
B- The acquired company dissolves as a separate corporation and becomes a division of the acquiring company.
C- The original companies dissolve while remaining as separate divisions of a newly created company.
D- Both companies remain in existence as legal corporations with one corporation now a subsidiary of the acquiring company.
E- A statutory merger is no longer a legal option.
17- Which of the following statements is true regarding a statutory consolidation?
A- Both companies remain in existence as legal corporations with one corporation now a subsidiary of the acquiring company.
B- A statutory consolidation is no longer a legal option.
C- The acquiring company acquires the stock of the acquired company as an investment.
D- The original companies dissolve while remaining as separate divisions of a newly created company.
E- The acquired company dissolves as a separate corporation and becomes a division of the acquiring company.
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