1. Which of the following may be used as acquisition vehicles?

1. Partnership
2. Limited liability corporation
3. Corporate shell
4. ESOP
5. All of the above

2. In a statutory merger,

1. Only known assets and liabilities are automatically transferred to the buyer.
2. Only known and unknown assets are transferred to the buyer.
3. All known and unknown assets and liabilities are automatically transferred to the buyer except for those the seller agrees to retain.
4. The total consideration received by the targets shareholders is automatically taxable.
5. None of the above.

3. Which of the following is not a characteristic of a joint venture corporation?

1. Profits and losses can be divided between the partners disproportionately to their ownership shares.
2. New investors can become part of the JV corporation without having to dissolve the original JV corporate structure.
3. The JV corporation can be used to acquire other firms.
4. Investors liability is limited to the extent of their investment.
5. The JV corporation may be subject to double taxation.