When a Merger of Two Firms Is Achieved by One

question 20

Multiple Choice

When a merger of two firms is achieved by one firm automatically assuming all the assets and all the liabilities of the other firm; such a merger requires:

• A) no shareholder meeting to vote is necessary.
• B) the approval of at least 50% of the stockholders (or as specified by corporate charters or state laws) of each firm.
• C) that the management of the two firms be tossed out.
• D) none of the above.