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Question CPA-03027 - summary of the merger plan Explanation...

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Becker CPA Review Course Registered to: James Chang Distributed by DeVry Educational Products, Inc. Copyright © 2006 DeVry/Becker Educational Development Corp. All rights reserved. Question CPA-03027 Lecture B1 Topic B 1-06 Which of the following statements is a general requirement for the merger of two corporations? a. The merger plan must be approved unanimously by the stockholders of both corporations. b. The merger plan must be approved unanimously by the boards of both corporations. c. The absorbed corporation must amend its articles of incorporation. d. The stockholders of both corporations must be given due notice of a special meeting, including a copy or
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Unformatted text preview: summary of the merger plan. Explanation Choice "d" is correct. Both corporations must give shareholders notice and a summary of the merger plan. Choice "a" is incorrect. A merger plan need only be approved by a majority of the shareholders, not by all shareholders. Choice "b" is incorrect. The merger plan needs to be approved only by a majority of each board of directors of the corporations. Choice "c" is incorrect. The absorbed corporation ceases to exist; its articles need not be amended....
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  • Spring '10
  • Corporation, Types of business entity, Educational Development Corp, merger plan, James Chang, DeVry Educational Products

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