Which of the Following Statements Is True Regarding a Statutory

question 5

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 only the acquiring company survives.
• 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:

Legal Steps

Sequential actions or procedures that are taken in accordance with law to achieve a legal outcome, such as filing a lawsuit or executing a contract.

Collateral

Assets or property offered as security for the repayment of a loan, subject to seizure on default.

Proceeds

The amount of money received from a sale or transaction, often after deducting costs or expenses.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower fails to make the required payments.