Question

In: Economics

Which of the following is a correct statement regarding a​ merger? A. The surviving corporation gains...

Which of the following is a correct statement regarding a​ merger?

A. The surviving corporation gains none of the​ rights, privileges,​ powers, duties,​ obligations, or liabilities of the merged corporation.

B. The shareholders of the merged corporation do not receive stock or securities of the surviving corporation.

C. A merger occurs when one corporation is absorbed into another corporation.

D. The corporation that ceases to exist is called the suspended corporation

E. The corporation that continues to exist is called the merged corporation.

Solutions

Expert Solution

Answer: E. The corporation that continues to exist is called the merged corporation

A merger is when two firms combine there assets and liabilities into one company broadly on equal terms. If is different from aquiring as in aquisition a firm is absorbed by one company. When two corporations merge, the new entity which is also the corporation that now exists is termed as the merged corporation.

Rahul Sunny answered 2 years ago
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