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:

UCC

The Uniform Commercial Code delivers a full suite of legal stipulations for handling commercial transactions across the United States.

Lien

A legal claim or right against a property that can be used as collateral to satisfy a debt owed by the property owner.

Implied Warranty Of Trade Usage

An assurance, inferred in the context of certain UCC sales, depending on the circumstances, that can be created through a well-accepted course of dealing or trade usage.

Soda Pop

A sweetened carbonated beverage, commonly known as soda or soft drink.