ch 40 - Sheet1 Page 1 Chapter 40 Corporations¡ª Merger,...

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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 d 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 s
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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 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: =
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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
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