AB Corporation Consolidates with ZX Corporation to Form A-Z Corporation

question 8

Multiple Choice

AB Corporation consolidates with ZX Corporation to form A-Z Corporation. The debts of AB Corporation are:

• A) assumed by the stockholders of AB Corporation.
• B) discharged by the process of consolidation.
• C) assumed by A-Z Corporation.
• D) discharged by the issuance of new stock in A-Z Corporation.

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Definitions:

Standard Deviation

A statistical measure that represents the dispersion or variance in a set of data points, used in finance to measure the volatility of investment returns.

Beta

Beta is a measure of an investment's volatility and systemic risk compared to the overall market.

S&P 500 Index

The S&P 500 Index is a market-capitalization-weighted index of 500 of the largest publicly traded companies in the U.S., widely regarded as one of the best indicators of U.S. stock market performance.

Risk-Adjusted Return

A measure of the return on an investment portfolio that has been adjusted for the risk the investor has taken, providing a more accurate depiction of the portfolio's performance.