Which of the Following Is True of a Share Exchange

question 61

Multiple Choice

Which of the following is true of a share exchange?

• A)The subsidiary corporation ceases to exist after the share exchange.
• B)The legal existence of both corporations is retained after the exchange.
• C)The shares of both parent and subsidiary corporation are divided equally between themselves.
• D)The subsidiary company can have a maximum of three shareholders in the exchange.

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