Which of the Following Statements Is True Regarding a Statutory

question 39

Multiple Choice

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

• 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 consolidation is no longer a legal option.

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Definitions:

ADR

Stands for Alternative Dispute Resolution; it is a set of procedures such as mediation and arbitration for resolving disputes outside the traditional judicial system.

Binding Arbitration Clause

A contract agreement requiring the parties to resolve disputes through an arbitration process rather than through litigation in court.

Arbitration

A form of alternative dispute resolution where a neutral third party makes a decision on a dispute outside of the court system.

Judicial Actions

involves legal proceedings or activities carried out by courts and judges, encompassing the enforcement, interpretation, and application of laws.