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:

Harassment

Unwanted or offensive behavior that causes someone to feel distressed, intimidated, or humiliated.

Fair Debt Collection Practices Act

A U.S. federal law designed to protect consumers from abusive, deceptive, and unfair debt collection practices.

Written Agreement

A documented accord between two or more parties, outlining terms and conditions to which they have mutually consented.

Terms of Payment

The conditions under which a seller will complete a sale, typically specifying the period allowed to a buyer to pay for the goods or services received.