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

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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....
View Full Document

This note was uploaded on 09/25/2011 for the course ACCOUNTING AC555ON taught by Professor Abekele during the Spring '10 term at Keller Graduate School of Management.

Ask a homework question - tutors are online