Which of the Following Is True of a Share Exchange

question 34

Multiple Choice

Which of the following is true of a share exchange?

• A) The subsidiary corporation ceases to exist after the share exchange.
• B) The legal existence of both corporations is retained after the exchange.
• C) The shares of both parent and subsidiary corporations are divided equally between themselves.
• D) The subsidiary corporation can have a maximum of three shareholders in the exchange.

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