What Is the Difference Between the Procedures Governing Mergers and Consolidations

question 13

Multiple Choice

What is the difference between the procedures governing mergers and consolidations?

• A)With consolidation,the plan need not be submitted to the secretary of state.
• B)Unlike consolidation,with merger,the shareholders must approve the plan before it goes to the board of directors.
• C)With consolidation,only the board of directors of both involved corporations must approve the plan;with merger,the shareholders of both involved corporations must also approve the plan.
• D)The procedures governing mergers and consolidations are the same.
• E)Unlike merger,with consolidation,no approval certificate is necessary.

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Definitions:

Cost-Plus Approach

A pricing strategy where a fixed percentage or amount of profit is added on top of the cost to produce or purchase goods or services.

Selling Expenses

are costs associated with marketing and selling a company's products or services, including advertising, sales staff salaries, and commissions.

Differential Revenue

The difference in revenue expected from two different decisions or alternatives.

Direct Materials

Raw materials that are directly traceable to the production of specific goods or services and are an integral part of the finished product.