ch 40 - Chapter 40 Corporations Merger Consolidation and...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Sheet1 Page 1 Chapter 40 Corporations¡ª Merger, Consolidation, and Termination TRUE/FALSE QUESTIONS A1. In a merger, the articles of incorporation of the surviving corporation are deemed not to include any changes that are state ANSWER: F PAGE: 819 TYPE: = NAT: AACSB Analytic AICPA Legal B1. A merger involves the legal combination of two or more corporations, none of which continue to exist. ANSWER: F PAGE: 819 TYPE: = NAT: AACSB Analytic AICPA Legal A2. After a merger, the disappearing corporation retains all of its preexisting obligations. ANSWER: F PAGE: 819 TYPE: = NAT: AACSB Analytic AICPA Legal B2. After a merger, the surviving corporation inherits all of the disappearing corporation¡¯s preexisting rights. ANSWER: T PAGE: 819 TYPE: = NAT: AACSB Analytic AICPA Legal TEST BANK A¡ªUNIT EIGHT: BUSINESS ORGANIZATIONS A3. After a merger, a disappearing corporation¡¯s preexisting rights disappear. ANSWER: F PAGE: 819 TYPE: = NAT: AACSB Analytic AICPA Legal B3. After a merger, a surviving corporation¡¯s shareholders assume personal liability for a disappearing corporation¡¯s preexi
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Sheet1 Page 2 ANSWER: F PAGE: 819 TYPE: = NAT: AACSB Analytic AICPA Legal A4. In a consolidation, the consolidating corporations become subsidiaries of the new corporation. ANSWER: F PAGE: 821 TYPE: = NAT: AACSB Analytic AICPA Legal B4. A corporation can extend its operations through a consolidation. ANSWER: T PAGE: 819 TYPE: N NAT: AACSB Analytic AICPA Legal A5. After a consolidation, there are two or more surviving corporations. ANSWER: F PAGE: 821 TYPE: = NAT: AACSB Analytic AICPA Legal CHAPTER 40: CORPORATIONS¡ªMERGER, CONSOLIDATION, & TERMINATION B5. The main difference between a consolidation and a merger is that after a consolidation there are at least two surviving corporations. ANSWER: F PAGE: 821 TYPE: = NAT: AACSB Analytic AICPA Legal A6. After a consolidation, the new corporation inherits all of the consolidating corporations¡¯ obligations. ANSWER: T PAGE: 821 TYPE: = NAT: AACSB Analytic AICPA Legal B6. After a consolidation, the new corporation inherits all of the consolidating corporations¡¯ rights. ANSWER: T PAGE: 821 TYPE: =
Image of page 2
Sheet1 Page 3 NAT: AACSB Analytic AICPA Legal A7. In a share exchange, neither corporation¡¯s directors need to approve the exchange. ANSWER: F PAGE: 822 TYPE: N NAT: AACSB Analytic AICPA Legal B7. In a consolidation, the articles of consolidation become the articles of incorporation for the new corporation. ANSWER: T PAGE: 821 TYPE: = NAT: AACSB Analytic AICPA Legal A8. A short-form merger can be used whenever a parent owns more than 10 percent of the stock of its subsidiary. ANSWER: F PAGE: 822 TYPE: = NAT: AACSB Analytic AICPA Legal B8. In a short-form merger, neither corporation¡¯s shareholders need to approve the merger. ANSWER: T PAGE: 822 TYPE: N NAT: AACSB Analytic AICPA Legal A9. Shareholder appraisal rights are normally available in sales of sub- stantially all corporate assets not in the ordinary course of business.
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern