Question 1

When a corporation is dissolved voluntarily, its assets can be liquidated without notice to its creditors.

Accepted Answer

A) True 
 B)False

Question 2

Building Corporation and Construction Inc. combine so that only Construction continues to exist. This is

Accepted Answer

A)  a takeover.
B)  a merger.
C)  a liquidation.
D)  a share exchange.E) None of the above
F) A) and C)

Question 3

Cloud Inc. merges with Data Corporation. Cloud, the surviving corporation, issues shares or pays fair consideration to

Accepted Answer

A)  Cloud's shareholders.
B)  Data's shareholders.
C)  the state.
D)  no one.E) A) and D)
F) None of the above

Question 4

All states have statutes authorizing consolidations.

Accepted Answer

A) True 
 B)False

Question 5

Merger and consolidation refer to two legally distinct proceedings, but consolidation is also used to refer to all types of corporate combinations.

Accepted Answer

A) True 
 B)False

Question 6

Generally, a corporation that acquires any assets of another corporation needs to obtain shareholder approval for the purchase.

Accepted Answer

A) True 
 B)False

Question 7

Carrier Company exchanges some of its shares for some of the shares of Dispatch Corporation. The plan for this exchange must be approved by each corporation's

Accepted Answer

A)  directors only.
B)  shareholders only.
C)  directors and shareholders.
D)  none of the choices.E) A) and C)
F) A) and D)

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

The business judgment rule may apply to determine whether directors acted reasonably in resisting a takeover attempt.

Accepted Answer

A) True 
 B)False

Question 10

Beef Inc. merges with Chicken Corporation. Beef absorbs Chicken. After the merger, the surviving corporation is

Accepted Answer

A)  a different, new entity-Diners Choice Inc.
B)  Beef and Chicken.
C)  Beef only.
D)  Chicken only.E) A) and D)
F) B) and C)

Question 11

Dissolution of a corporation can be brought about by an agreement between the shareholders and the board of directors.

Accepted Answer

A) True 
 B)False

Question 12

Code Company combines its assets and liabilities with those of Design Corporation to form Engineer Inc. Code and Design cease to exist. With respect to the assets of Code and Design, Engineer Inc. 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) A) and C)
F) All of the above

Exam 38: Mergers and Takeovers

Beef Inc. merges with Chicken Corporation. Beef absorbs Chicken. After the merger, the surviving corporation is

Correct Answer
verified

The business judgment rule may apply to determine whether directors acted reasonably in resisting a takeover attempt.

Correct Answer
verified

Building Corporation and Construction Inc. combine so that only Construction continues to exist. This is

Correct Answer
verified

Carrier Company exchanges some of its shares for some of the shares of Dispatch Corporation. The plan for this exchange must be approved by each corporation's

Correct Answer
verified

Generally, a corporation that acquires any assets of another corporation needs to obtain shareholder approval for the purchase.

Correct Answer
verified

Dissolution of a corporation can be brought about by an agreement between the shareholders and the board of directors.

Correct Answer
verified

Code Company combines its assets and liabilities with those of Design Corporation to form Engineer Inc. Code and Design cease to exist. With respect to the assets of Code and Design, Engineer Inc. acquires

Correct Answer
verified

When a corporation is dissolved voluntarily, its assets can be liquidated without notice to its creditors.

Correct Answer
verified

Cloud Inc. merges with Data Corporation. Cloud, the surviving corporation, issues shares or pays fair consideration to

Correct Answer
verified

Merger and consolidation refer to two legally distinct proceedings, but consolidation is also used to refer to all types of corporate combinations.

Correct Answer
verified

All states have statutes authorizing consolidations.

Correct Answer
verified

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

Correct Answer
verified

Exam 38: Mergers and Takeovers

Beef Inc. merges with Chicken Corporation. Beef absorbs Chicken. After the merger, the surviving corporation is

Correct AnswerverifiedShow Answer

The business judgment rule may apply to determine whether directors acted reasonably in resisting a takeover attempt.

Correct AnswerverifiedShow Answer

Building Corporation and Construction Inc. combine so that only Construction continues to exist. This is

Correct AnswerverifiedShow Answer

Carrier Company exchanges some of its shares for some of the shares of Dispatch Corporation. The plan for this exchange must be approved by each corporation's

Correct AnswerverifiedShow Answer

Generally, a corporation that acquires any assets of another corporation needs to obtain shareholder approval for the purchase.

Correct AnswerverifiedShow Answer

Dissolution of a corporation can be brought about by an agreement between the shareholders and the board of directors.

Correct AnswerverifiedShow Answer

Code Company combines its assets and liabilities with those of Design Corporation to form Engineer Inc. Code and Design cease to exist. With respect to the assets of Code and Design, Engineer Inc. acquires

Correct AnswerverifiedShow Answer

When a corporation is dissolved voluntarily, its assets can be liquidated without notice to its creditors.

Correct AnswerverifiedShow Answer

Cloud Inc. merges with Data Corporation. Cloud, the surviving corporation, issues shares or pays fair consideration to

Correct AnswerverifiedShow Answer

Merger and consolidation refer to two legally distinct proceedings, but consolidation is also used to refer to all types of corporate combinations.

Correct AnswerverifiedShow Answer

All states have statutes authorizing consolidations.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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