TB MC Qu$.02-09$ Which of the following examples...

Which of the following examples accurately describes a difference in the types of business combinations?

Multiple Choice

A statutory merger can only be effected through an asset acquisition while a statutory consolidation can only be effected through a capital

stock acquisition.

A statutory merger can only be effected through a capital stock acquisition while a statutory consolidation can only be effected through an

asset acquisition.

A statutory merger requires the dissolution of the acquired company while a statutory consolidation requires dissolution of the companies

involved in the combination following the transfer of assets or stock to a newly formed entity.