Question 1

Bank Company decides to combine its operations with Credit Corporation to form Debit Finance Inc. Bank and Credit are domestic corporations. The plan for Bank and Credit's combination must be approved by the board of directors of

Accepted Answer

A)  each corporation.
B)  Bank only.
C)  Credit only.
D)  neither corporation.E) C) and D)
F) B) and D)

Question 2

On a consolidation, a new corporation acquires all of the assets and liabilities of the corporations that were consolidated.

Accepted Answer

A) True 
 B)False

Question 3

Dissolution of a corporation can be brought about by the shareholders' majority vote to initiate dissolution proceedings.

Accepted Answer

A) True 
 B)False

Question 4

Garden Company and Home Corporation make a plan to consolidate. Once approved, the plan will be filed with

Accepted Answer

A)  a holding company.
B)  a parent corporation.
C)  the appropriate state's secretary of state.
D)  the U.S. Department of Commerce.E) All of the above
F) A) and B)

Question 5

One corporation that owns all of the shares of another corporation is a subsidiary corporation .

Accepted Answer

A) True 
 B)False

Question 6

Shareholders are not required to vote to approve a plan of merger.

Accepted Answer

A) True 
 B)False

Question 7

All states have statutes authorizing share exchanges for domestic corporations.

Accepted Answer

A) True 
 B)False

Question 8

Appraisal rights cannot be lost even if the statutory procedures are not followed precisely.

Accepted Answer

A) True 
 B)False

Question 9

Operation Corporation acquires all of the assets of Process Inc. by direct purchase. Operation assumes the liabilities of Process if

Accepted Answer

A)  a court does not impose the liabilities on Operation.
B)  the sale does not amount to a merger or a consolidation.
C)  Operation replaces Process's personnel without continuing its business.
D)  none of the choices.E) A) and C)
F) B) and C)

Question 10

In a consolidation , two or more corporations combine in such a way that only one of the corporations continues to exist.

Accepted Answer

A) True 
 B)False

Question 11

Market Company exchanges some of its shares for some of the shares of Niche Corporation. On the exchange of shares between Market and Niche

Accepted Answer

A)  both companies continue to exist.
B)  both companies cease to exist.
C)  only Market survives.
D)  only Niche survives.E) A) and C)
F) None of the above

Question 12

Farm Inc. combines its assets and liabilities with those of Grain Company to form Harvest Corporation. Farm and Grain cease to exist. With respect to the liabilities of Farm and Grain, Harvest acquires

Accepted Answer

A)  none.
B)  only those acquired after the combination was proposed.
C)  an amount equal to the ratio of the firms' pre-merger market values.
D)  all.E) All of the above
F) B) and D)

Question 13

A court can dissolve a corporation for abuse of corporate powers.

Accepted Answer

A) True 
 B)False

Question 14

Alys and Bern pool their money and talents to form Cutting Edge Corporation, a precision tooling company. They are the firm's only shareholders, directors, and officers. After five years of declining home prices, they decide to cease business. Can they simply dissolve their corporation at will? If so, what are the steps in the process?

Accepted Answer

Alys and Bern can dissolve their corpora...

Question 15

All forms of business organizations limit the liability of their owners.

Accepted Answer

A) True 
 B)False

Question 16

Lumber Company owns more than 90 percent of the shares of Mill Corporation. A plan for a merger of Lumber and Mill must be approved by the directors of

Accepted Answer

A)  both corporations.
B)  Lumber only.
C)  Mill only.
D)  neither corporation.E) B) and C)
F) All of the above

Question 17

A court cannot dissolve a corporation for failure to commence business operations.

Accepted Answer

A) True 
 B)False

Question 18

Through a tender offer, an acquiring corporation deals directly with a target company's management in seeking to purchase the target's stock.

Accepted Answer

A) True 
 B)False

Question 19

In a merger, the surviving corporation assumes all of the assets and liabilities of the disappearing corporation.

Accepted Answer

A) True 
 B)False

Question 20

During the liquidation process, corporate assets are converted into cash.

Accepted Answer

A) True 
 B)False

Exam 38: Mergers and Takeovers

During the liquidation process, corporate assets are converted into cash.

Correct Answer
verified

Operation Corporation acquires all of the assets of Process Inc. by direct purchase. Operation assumes the liabilities of Process if

Correct Answer
verified

On a consolidation, a new corporation acquires all of the assets and liabilities of the corporations that were consolidated.

Correct Answer
verified

Correct Answer
verified
Alys and Bern can dissolve their corpora...
View Answer

In a merger, the surviving corporation assumes all of the assets and liabilities of the disappearing corporation.

Correct Answer
verified

One corporation that owns all of the shares of another corporation is a subsidiary corporation .

Correct Answer
verified

Bank Company decides to combine its operations with Credit Corporation to form Debit Finance Inc. Bank and Credit are domestic corporations. The plan for Bank and Credit's combination must be approved by the board of directors of

Correct Answer
verified

A court can dissolve a corporation for abuse of corporate powers.

Correct Answer
verified

Market Company exchanges some of its shares for some of the shares of Niche Corporation. On the exchange of shares between Market and Niche

Correct Answer
verified

All states have statutes authorizing share exchanges for domestic corporations.

Correct Answer
verified

A court cannot dissolve a corporation for failure to commence business operations.

Correct Answer
verified

Shareholders are not required to vote to approve a plan of merger.

Correct Answer
verified

Through a tender offer, an acquiring corporation deals directly with a target company's management in seeking to purchase the target's stock.

Correct Answer
verified

All forms of business organizations limit the liability of their owners.

Correct Answer
verified

Appraisal rights cannot be lost even if the statutory procedures are not followed precisely.

Correct Answer
verified

Lumber Company owns more than 90 percent of the shares of Mill Corporation. A plan for a merger of Lumber and Mill must be approved by the directors of

Correct Answer
verified

In a consolidation , two or more corporations combine in such a way that only one of the corporations continues to exist.

Correct Answer
verified

Dissolution of a corporation can be brought about by the shareholders' majority vote to initiate dissolution proceedings.

Correct Answer
verified

Farm Inc. combines its assets and liabilities with those of Grain Company to form Harvest Corporation. Farm and Grain cease to exist. With respect to the liabilities of Farm and Grain, Harvest acquires

Correct Answer
verified

Garden Company and Home Corporation make a plan to consolidate. Once approved, the plan will be filed with

Correct Answer
verified

Exam 38: Mergers and Takeovers

During the liquidation process, corporate assets are converted into cash.

Correct AnswerverifiedShow Answer

Operation Corporation acquires all of the assets of Process Inc. by direct purchase. Operation assumes the liabilities of Process if

Correct AnswerverifiedShow Answer

On a consolidation, a new corporation acquires all of the assets and liabilities of the corporations that were consolidated.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedAlys and Bern can dissolve their corpora...View AnswerShow Answer

In a merger, the surviving corporation assumes all of the assets and liabilities of the disappearing corporation.

Correct AnswerverifiedShow Answer

One corporation that owns all of the shares of another corporation is a subsidiary corporation .

Correct AnswerverifiedShow Answer

Bank Company decides to combine its operations with Credit Corporation to form Debit Finance Inc. Bank and Credit are domestic corporations. The plan for Bank and Credit's combination must be approved by the board of directors of

Correct AnswerverifiedShow Answer

A court can dissolve a corporation for abuse of corporate powers.

Correct AnswerverifiedShow Answer

Market Company exchanges some of its shares for some of the shares of Niche Corporation. On the exchange of shares between Market and Niche

Correct AnswerverifiedShow Answer

All states have statutes authorizing share exchanges for domestic corporations.

Correct AnswerverifiedShow Answer

A court cannot dissolve a corporation for failure to commence business operations.

Correct AnswerverifiedShow Answer

Shareholders are not required to vote to approve a plan of merger.

Correct AnswerverifiedShow Answer

Through a tender offer, an acquiring corporation deals directly with a target company's management in seeking to purchase the target's stock.

Correct AnswerverifiedShow Answer

All forms of business organizations limit the liability of their owners.

Correct AnswerverifiedShow Answer

Appraisal rights cannot be lost even if the statutory procedures are not followed precisely.

Correct AnswerverifiedShow Answer

Lumber Company owns more than 90 percent of the shares of Mill Corporation. A plan for a merger of Lumber and Mill must be approved by the directors of

Correct AnswerverifiedShow Answer

In a consolidation , two or more corporations combine in such a way that only one of the corporations continues to exist.

Correct AnswerverifiedShow Answer

Dissolution of a corporation can be brought about by the shareholders' majority vote to initiate dissolution proceedings.

Correct AnswerverifiedShow Answer

Farm Inc. combines its assets and liabilities with those of Grain Company to form Harvest Corporation. Farm and Grain cease to exist. With respect to the liabilities of Farm and Grain, Harvest acquires

Correct AnswerverifiedShow Answer

Garden Company and Home Corporation make a plan to consolidate. Once approved, the plan will be filed with

Correct AnswerverifiedShow Answer

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verified

Correct Answer
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Correct Answer
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Correct Answer
verified
Alys and Bern can dissolve their corpora...
View Answer

Correct Answer
verified

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Correct Answer
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Correct Answer
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