Fact Pattern 31-4 Carrier Company Exchanges Some of Its Shares

question 45

Multiple Choice

Fact Pattern 31-4 Carrier Company exchanges some of its shares for some of the shares of Distribution Corporation. The exchange is used to create Equity Inc., whose business activity is to hold the shares of the two companies.
Refer to Fact Pattern 31-4. The plan for the exchange of shares between Carrier and Distribution must be approved by each corporation's

• A) directors only.
• B) shareholders only.
• C) directors and shareholders.
• D) none of the choices.

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Definitions:

Motivated Forgetting

The subconscious or conscious act of forgetting or suppressing information that is too painful, embarrassing, or unpleasant to remember.

Misinformation Effect

Incorporating misleading information into one’s memory of an event.

Seconds Before Asleep

The brief period or moments directly preceding the onset of sleep.

Ebbinghaus Forgetting Curve

A graphical representation that shows the rate at which information is forgotten over time, indicating that memory loss occurs rapidly at first and then levels off.