Question 1

A takeover is the acquisition of control over a corporation by through the purchase of substantially all of its assets.​

Accepted Answer

A) True 
 B)False

Question 2

Lee files a suit against Memphis Studios Inc. While the suit is pending, Memphis Studios consolidates with Nashville Music Corporation to form Opry Productions, Inc. Now, liability in the suit, if any, rests with​

Accepted Answer

A)   ​Opry Productions.
B)   ​Memphis Studios and Nashville Music.
C)   ​Lee.
D)   ​no one.E) B) and C)
F) All of the above

Question 3

Generally, a corporation that is selling all of its assets must obtain the approval of the board of directors and the shareholders.​

Accepted Answer

A) True 
 B)False

Question 4

Only one of the boards of directors of the corporations involved must approve a merger.

Accepted Answer

A) True 
 B)False

Question 5

BMX Corp. wants to acquire all the assets of Cycle Racing Corp. BMX plans to pay for the assets by issuing its own corporate stock. BMX's board of directors has already approved the merger. In what circumstances would the approval of BMX's shareholders be required for this merger? Is the approval of Cycle Racing's shareholders necessary? Explain.​

Accepted Answer

When a corporation acquires all the asse...

Question 6

Manmade Products Corporation and Natural Goods Company combine so that all that remains after the papers have been signed is Manmade Goods. This is​

Accepted Answer

A)   ​a consolidation.
B)   ​a merger.
C)   ​a purchase of assets.
D)   ​a share exchange.E) A) and B)
F) A) and C)

Question 7

On a consolidation, one corporation inherits all of the rights and liabilities of its predecessors.​

Accepted Answer

A) True 
 B)False

Question 8

In some states, a consolidation follows the same procedure as the incorporation of any new corporation.

Accepted Answer

A) True 
 B)False

Question 9

Each state establishes specific procedures for a consolidation.​

Accepted Answer

A) True 
 B)False

Question 10

When deciding which form of business organization to choose, businesspersons normally take into account tax considerations.​

Accepted Answer

A) True 
 B)False

Question 11

Shareholders cannot lose their appraisal rights under any circumstances.​

Accepted Answer

A) True 
 B)False

Question 12

When a corporation is dissolved voluntarily, the corporation does not need to file articles of dissolution with the state.​

Accepted Answer

A) True 
 B)False

Exam 41: Mergers and Takeovers

Correct Answer
verified
When a corporation acquires all the asse...
View Answer

Shareholders cannot lose their appraisal rights under any circumstances.

Correct Answer
verified

Each state establishes specific procedures for a consolidation.

Correct Answer
verified

When a corporation is dissolved voluntarily, the corporation does not need to file articles of dissolution with the state.

Correct Answer
verified

A takeover is the acquisition of control over a corporation by through the purchase of substantially all of its assets.

Correct Answer
verified

Lee files a suit against Memphis Studios Inc. While the suit is pending, Memphis Studios consolidates with Nashville Music Corporation to form Opry Productions, Inc. Now, liability in the suit, if any, rests with

Correct Answer
verified

Only one of the boards of directors of the corporations involved must approve a merger.

Correct Answer
verified

Manmade Products Corporation and Natural Goods Company combine so that all that remains after the papers have been signed is Manmade Goods. This is

Correct Answer
verified

In some states, a consolidation follows the same procedure as the incorporation of any new corporation.

Correct Answer
verified

Generally, a corporation that is selling all of its assets must obtain the approval of the board of directors and the shareholders.

Correct Answer
verified

On a consolidation, one corporation inherits all of the rights and liabilities of its predecessors.

Correct Answer
verified

When deciding which form of business organization to choose, businesspersons normally take into account tax considerations.

Correct Answer
verified

Exam 41: Mergers and Takeovers

Correct AnswerverifiedWhen a corporation acquires all the asse...View AnswerShow Answer

Shareholders cannot lose their appraisal rights under any circumstances.​

Correct AnswerverifiedShow Answer

Each state establishes specific procedures for a consolidation.​

Correct AnswerverifiedShow Answer

When a corporation is dissolved voluntarily, the corporation does not need to file articles of dissolution with the state.​

Correct AnswerverifiedShow Answer

A takeover is the acquisition of control over a corporation by through the purchase of substantially all of its assets.​

Correct AnswerverifiedShow Answer

Lee files a suit against Memphis Studios Inc. While the suit is pending, Memphis Studios consolidates with Nashville Music Corporation to form Opry Productions, Inc. Now, liability in the suit, if any, rests with​

Correct AnswerverifiedShow Answer

Only one of the boards of directors of the corporations involved must approve a merger.

Correct AnswerverifiedShow Answer

Manmade Products Corporation and Natural Goods Company combine so that all that remains after the papers have been signed is Manmade Goods. This is​

Correct AnswerverifiedShow Answer

In some states, a consolidation follows the same procedure as the incorporation of any new corporation.

Correct AnswerverifiedShow Answer

Generally, a corporation that is selling all of its assets must obtain the approval of the board of directors and the shareholders.​

Correct AnswerverifiedShow Answer

On a consolidation, one corporation inherits all of the rights and liabilities of its predecessors.​

Correct AnswerverifiedShow Answer

When deciding which form of business organization to choose, businesspersons normally take into account tax considerations.​

Correct AnswerverifiedShow Answer

Correct Answer
verified
When a corporation acquires all the asse...
View Answer

Shareholders cannot lose their appraisal rights under any circumstances.

Correct Answer
verified

Each state establishes specific procedures for a consolidation.

Correct Answer
verified

When a corporation is dissolved voluntarily, the corporation does not need to file articles of dissolution with the state.

Correct Answer
verified

A takeover is the acquisition of control over a corporation by through the purchase of substantially all of its assets.

Correct Answer
verified

Lee files a suit against Memphis Studios Inc. While the suit is pending, Memphis Studios consolidates with Nashville Music Corporation to form Opry Productions, Inc. Now, liability in the suit, if any, rests with

Correct Answer
verified

Correct Answer
verified

Manmade Products Corporation and Natural Goods Company combine so that all that remains after the papers have been signed is Manmade Goods. This is

Correct Answer
verified

Correct Answer
verified

Generally, a corporation that is selling all of its assets must obtain the approval of the board of directors and the shareholders.

Correct Answer
verified

On a consolidation, one corporation inherits all of the rights and liabilities of its predecessors.

Correct Answer
verified

When deciding which form of business organization to choose, businesspersons normally take into account tax considerations.

Correct Answer
verified