Which of the Following Is True of a Share Exchange

question 34

Multiple Choice

Which of the following is true of a share exchange?

• A) The subsidiary corporation ceases to exist after the share exchange.
• B) The legal existence of both corporations is retained after the exchange.
• C) The shares of both parent and subsidiary corporations are divided equally between themselves.
• D) The subsidiary corporation can have a maximum of three shareholders in the exchange.

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Definitions:

Consumer Bill of Rights

The Consumer Bill of Rights is a set of guidelines that aim to protect consumers in the marketplace by ensuring fair trade practices and the right to safety, to be informed, to choose, and to be heard.

Corporate Culture

The shared values, beliefs, attitudes, and practices that characterize an organization and shape its behavior and its employees'.

Ethical Behavior

Conduct that aligns with accepted moral guidelines or principles, typically characterized by fairness, integrity, and responsibility.

Codes of Ethics

A set of principles and guidelines designed to help professionals conduct business honestly and with integrity.