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Exam 35: Corporate Mergers, Takeovers, and Termination

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Question 21

Multiple Choice

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

A) a takeover.
B) a merger.
C) a liquidation.
D) a share exchange.

E) None of the above
F) All of the above

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Question 22

Multiple Choice

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Repair Inc. issues a plan to combine operations with Service Company. Tom is a shareholder who disapproves of the deal. He may be entitled to an appraisal right if the combination is

A) a merger or a short-form merger.
B) none of the choices.
C) a purchase of substantially all of the assets of either corporation.
D) a dissolution or winding up of either corporation.

E) None of the above
F) All of the above

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Question 23

Multiple Choice

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All of the shares of GMO Inc. are owned by Hybrid Inc. GMO Inc. is

Mergers, consolidations, and share exchanges are authorized

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

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

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

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

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

No state allows the combination of domestic and foreign corporations.

Apps Inc. decides to combine its operations with Beta Company to form Computer Software Inc. Apps and Beta are domestic corporations. Before a vote is taken on the proposed combination, sufficient information to evaluate the deal must be given to each corporation's

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

When dissolution takes place by voluntary action, the members of the board of directors act as trustees of the corporate assets.

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

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

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

Corporate creditors are required to approve a plan of consolidation.

All states have statutes authorizing share exchanges for domestic corporations.

Revenue Inc. owns more than 90 percent of the shares of Sales Corporation. A copy of a plan for a merger of Revenue and Sales must be sent to each shareholder of

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