An Example of a Difference in Types of Business Combination

question 81

Multiple Choice

An example of a difference in types of business combination is:

• A) A statutory merger can only be effected by an asset acquisition while a statutory consolidation can only be effected by a capital stock acquisition.
• B) A statutory merger can only be effected by a capital stock acquisition while a statutory consolidation can only be effected by an asset acquisition.
• C) A statutory merger requires dissolution of the acquired company while a statutory consolidation does not require dissolution.
• 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 by an asset acquisition but only a statutory consolidation requires dissolution of the acquired company.

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Definitions:

Bailee

An individual or entity given temporary possession but not ownership of personal property by another (the bailor) for a specific purpose.

Document of Title

A legal document or electronic record evidencing the right to control the disposition of goods, such as a bill of lading or warehouse receipt.

Right to Cooperation

This concept involves the expectation or requirement for parties in a legal agreement or obligation to work together towards the fulfillment of the terms of the agreement or resolution of any disputes.

Untimely

Untimely refers to something occurring or being done at an inappropriate, inopportune, or irregular time, often resulting in adverse effects or inconveniences.