When the Board of Directors of a Parent Corporation Approves

question 81

Multiple Choice

When the board of directors of a parent corporation approves its merger with its subsidiary and sends a copy of the merger plan to the subsidiary's shareholders,such a merger is called a(n) :

• A)semi-merger.
• B)half-merger.
• C)incomplete merger.
• D)short-form merger.

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Definitions:

Current Assets

Assets likely to be converted into cash within a year, such as inventory, accounts receivable, and cash and cash equivalents.

Current Liabilities

Short-term financial obligations that are due within one year or within the operating cycle.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of a business, whichever is longer.

Current Ratio

A financial metric that compares a company's current assets to its current liabilities, indicating liquidity levels.