Exam 35: Corporate Mergers, Takeovers, and Termination

On a consolidation, a new corporation acquires all of the assets and liabilities of the corporations that were consolidated.

No state allows the combination of domestic and foreign corporations.

A court can dissolve a corporation for abuse of corporate powers.

Mergers, consolidations, and share exchanges are authorized

All states have statutes authorizing share exchanges for domestic corporations.

When dissolution takes place by voluntary action, the members of the board of directors act as trustees of the corporate assets.

Apps Inc. decides to combine its operations with Beta Company to form Computer Software Inc. Apps and Beta are domestic corporations. Before a vote is taken on the proposed combination, sufficient information to evaluate the deal must be given to each corporation's

Only one of the boards of directors of the corporations involved must approve a merger.

All of the shares of GMO Inc. are owned by Hybrid Inc. GMO Inc. is

In a merger, the surviving corporation assumes all of the assets and liabilities of the disappearing corporation.

Lumber Company owns more than 90 percent of the shares of Mill Corporation. A plan for a merger of Lumber and Mill must be approved by the directors of

Garden Company and Home Corporation make a plan to consolidate. Once approved, the plan will be filed with

One corporation that owns all of the shares of another corporation is a subsidiary corporation.

Farm Inc. combines its assets and liabilities with those of Grain Company to form Harvest Corporation. Farm and Grain cease to exist. With respect to the liabilities of Farm and Grain, Harvest acquires

Corporate creditors are required to approve a plan of consolidation.

Revenue Inc. owns more than 90 percent of the shares of Sales Corporation. A copy of a plan for a merger of Revenue and Sales must be sent to each shareholder of

Building Corporation and Construction Inc. combine so that only Construction continues to exist. This is

All forms of business organizations limit the liability of their owners.

Operation Corporation acquires all of the assets of Process Inc. by direct purchase. Operation assumes the liabilities of Process if

Repair Inc. issues a plan to combine operations with Service Company. Tom is a shareholder who disapproves of the deal. He may be entitled to an appraisal right if the combination is