Ch40-TB2-WBL-10e

Ch40-TB2-WBL-10e - Chapter40 Corporations...

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Chapter 40 Corporations— Merger, Consolidation, and Termination N.B.:   TYPE  indicates that a question is new, modified, or unchanged, as  follows. N A question  new  to this edition of the Test Bank. + A question  modified  from the previous edition of the Test Bank, = A question  included  in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS 1. A merger involves the legal combination of two or more corporations, none  of which continue to exist. ANSWER: F PAGE: 806 TYPE: + 2. After a merger, the surviving corporation inherits all of the disappearing  corporation’s preexisting  rights . ANSWER: T PAGE: 806 TYPE: = 3. After a merger, a surviving corporation’s shareholders assume   personal  liability for a disappearing corporation’s preexisting  obligations . ANSWER: F PAGE: 806 TYPE: N 147
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148 TEST BANK 2--UNIT EIGHT: BUSINESS ORGANIZATIONS 4. The main difference between a consolidation and a merger is that in a  consolidation there are two surviving corporations. ANSWER: F PAGE: 808 TYPE: = 5. After a consolidation, the new corporation inherits all of the consolidating  corporations’  rights . ANSWER: T PAGE: 808 TYPE: = 6. In a consolidation, the articles of consolidation become the articles of in- corporation for the new corporation. ANSWER: T PAGE: 808 TYPE: = 7. In a short-form merger, the merging corporation’s shareholders do  not  need  to approve the merger. ANSWER: T PAGE: 809 TYPE: = 8. In most cases, merging corporations’ shareholders do  not  need to approve  the merger. ANSWER: F PAGE: 809 TYPE: = 9. In a merger, only a surviving corporation’s shareholders are entitled to ap- praisal rights. ANSWER: F PAGE: 809 TYPE: N 10. Appraisal rights can force shareholders to be owners of corporations that  are different from the ones in which they originally invested. ANSWER: F PAGE: 809 TYPE: = 11. Once   a   shareholder   elects   appraisal   rights,   in   many   jurisdictions,   the  shareholder loses his or her shareholder status. ANSWER: T PAGE: 811 TYPE: = 12. Under shareholder appraisal rights, the shareholder and the corporation  must agree on the shares’ fair value or a court will determine it.
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CHAPTER 40: CORPORATIONS—MERGER, CONSOLIDATION, AND TERMINATION 149 ANSWER: T PAGE: 811 TYPE: + 13. The fair value of shares under shareholder appraisal rights is normally the  value on the day  before  the shareholders vote on a proposed action. ANSWER: T PAGE: 811 TYPE: N
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150 TEST BANK 2--UNIT EIGHT: BUSINESS ORGANIZATIONS 14. Selling all of a corporation’s assets requires the approval of its board of  directors and its shareholders. ANSWER:
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This note was uploaded on 10/15/2010 for the course ACCT ACCT40 taught by Professor Birnbaum during the Fall '08 term at CUNY Brooklyn.

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Ch40-TB2-WBL-10e - Chapter40 Corporations...

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