Which One of the Following Statements Concerning a Reverse Triangular

question 60

Multiple Choice

Which one of the following statements concerning a reverse triangular merger is false?

• A)Subsidiary corporation is merged into target corporation.
• B)Voting stock of parent corporation is given to shareholders of target corporation in return for all of target's assets.
• C)Parent corporation must obtain at least 80 percent of voting and at least 80 percent of nonvoting stock of the target corporation.
• D)All of the above statements are true.

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Definitions:

Entrepreneur's Forgone Interest

The potential interest income sacrificed by an entrepreneur when choosing to invest personal funds into their own business rather than in an interest-bearing account.

Long-Run Average Cost

The per-unit cost of production in the long-term, where all input factors are variable, indicating economies or diseconomies of scale.

Upward-Sloping

Describes a line on a graph that demonstrates an increase in value as it moves to the right, often used to represent increases in costs or prices.