If There Is a Consolidation of Corporations A, B, and C

question 23

Multiple Choice

If there is a consolidation of corporations A, B, and C: ______.

• A) corporations B and C are absorbed into corporation A, and corporation A continues to exist.
• B) all of the corporations continue to exist.
• C) all corporations continue to exist, but corporation A owns all of the stock of corporations B and C.
• D) corporations A, B, and C cease to exist, and a new corporation with the property and assets of the old corporations comes into being.

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Definitions:

Current Yield

The annual income return from an investment, expressed as a percentage of the current price of the security.

Bonds

Securities issued by corporations or governments that represent a loan from the investor to the issuer, typically paying periodic interest payments and returning the principal at maturity.

Maturation

The process of becoming mature, either physically, emotionally, or in the case of products and ideas, reaching a state of full development.

Yield to Maturity

The total return expected on a bond if it is held until its maturity date.