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:

Insured

The individual or entity covered by an insurance policy, which provides protection against loss or damage.

Insurer

An entity that provides insurance coverage, assuming the risk of loss from an insured party in exchange for premiums paid.

Brokers

Intermediaries that arrange transactions between buyers and sellers for a commission.

Loss

A reduction in value, particularly referring to finances, such as money, or other assets.