Which of the Following Statements Is True Regarding a Statutory

question 110

Multiple Choice

Which of the following statements is true regarding a statutory merger?

• A) The original companies dissolve while remaining as separate divisions of a newly created company.
• B) Both companies remain in existence as legal corporations with one corporation now a subsidiary of the acquiring company.
• C) The acquired company dissolves as a separate corporation and becomes a division of the acquiring company.
• D) The acquiring company acquires the stock of the acquired company as an investment.
• E) A statutory merger is no longer a legal option.

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Definitions:

Direct Materials Cost

The cost of raw materials that can be directly attributed to the production of specific goods or services.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing a more accurate reflection of costs.

Direct Labor-Hours

Direct labor-hours are the total hours worked by employees directly involved in the manufacturing process.

Direct Materials Cost

The cost of raw materials used to produce a product, which are directly attributable to the product.