If a Company Owns 90 Percent or More of a Subsidiary's

question 76

Multiple Choice

If a company owns 90 percent or more of a subsidiary's stock, a merger may be effected with approval of the parent's board of directors alone, without resort to shareholders. This is called a:

• A) parent-sub merger.
• B) board merger.
• C) short-cut merger.
• D) short-form merger.

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Definitions:

Price Level

A measure indicating the average price of goods and services in an economy at a given time.

U.S. Residents

Individuals who live in the United States, including citizens, permanent residents, and long-term visitors.

Aggregate Demand

The amassed demand for all types of goods and services in an economic domain, set at a uniform price level across a certain time range.

Inventories

The goods and materials that a business holds with the purpose of resale or production in the future.