Which of the Following Examples Accurately Describes a Difference in the Types

question 68

Multiple Choice

Which of the following examples accurately describes a difference in the types of business combinations?

• A) A statutory merger can only be effected through an asset acquisition while a statutory consolidation can only be effected through a capital stock acquisition.
• B) A statutory merger can only be effected through a capital stock acquisition while a statutory consolidation can only be effected through an asset acquisition.
• C) A statutory merger requires the dissolution of the acquired company while a statutory consolidation requires dissolution of the companies involved in the combination following the transfer of assets or stock to a newly formed entity.
• D) A statutory consolidation requires dissolution of the acquired company while a statutory merger does not require dissolution.
• E) Both a statutory merger and a statutory consolidation can only be effected through an asset acquisition but only a statutory consolidation requires dissolution of the acquired company.

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Definitions:

Total Revenue

The total amount of money a company receives from selling its goods or services, calculated as the quantity sold multiplied by the sale price.

Perfectly Price-inelastic

A situation where the quantity demanded or supplied of a good does not change in response to a price change.

Constant Slope

Implies a uniform rate of change in one variable relative to another, represented graphically as a straight line.

Price Elasticity

The responsiveness level of the quantity of a good demanded to the price modifications of that good.