Which of the Following Statements Is True Regarding a Statutory

question 110

Multiple Choice

Which of the following statements is true regarding a statutory merger?

• A) The original companies dissolve while remaining as separate divisions of a newly created company.
• B) Both companies remain in existence as legal corporations with one corporation now a subsidiary of the acquiring company.
• C) The acquired company dissolves as a separate corporation and becomes a division of the acquiring company.
• D) The acquiring company acquires the stock of the acquired company as an investment.
• E) A statutory merger is no longer a legal option.

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Definitions:

Void

A legal term indicating that a contract or legal instrument is invalid and has no legal effect.

Tanker

A large vessel designed for transporting liquid cargo, such as oil, gas or chemicals.

Oral Contract

An agreement between parties that is made through spoken words and promises rather than in writing, yet is legally binding.

Unilateral Mistake

A misunderstanding where one party to a contract is mistaken about a basic assumption on which the contract is based.