Question 1

The shareholder's appraisal right extends to mergers and consolidations.

Accepted Answer

A) True 
 B)False

Question 2

In a share exchange,one corporation will issue shares or pay some fair consideration to the shareholders of another corporation that will then cease to exist.

Accepted Answer

A) True 
 B)False

Question 3

Broncobuster BarBQ Company and Cowpuncher Cuisine,Inc. decide to combine. Deanna,a Cowpuncher shareholder,is dissatisfied with the price that she will receive for her stock. In the absence of fraud or other illegal conduct,Deanna's exclusive remedy is to

Accepted Answer

A) exercise an appraisal right. 
B) file a suit to delay the process. 
C) refuse to agree to the deal,which cannot then proceed. 
D) acquire stock from the other shareholders and thereby obtain corporate control. 
A) exercise an appraisal right. 
B) file a suit to delay the process. 
C) refuse to agree to the deal,which cannot then proceed. 
D) acquire stock from the other shareholders and thereby obtain corporate control.

Question 4

The articles of merger include changes that differ from Hilltop's articles of incorporation. The articles of incorporation

Accepted Answer

A) are deemed amended to include the changes. 
B) are replaced by the articles of merger. 
C) effectively prevent the merger. 
D) preempt the articles of merge. 
A) are deemed amended to include the changes. 
B) are replaced by the articles of merger. 
C) effectively prevent the merger. 
D) preempt the articles of merge.

Question 5

When deciding which form of business organization to choose,businesspersons normally consider only one factor.

Accepted Answer

A) True 
 B)False

Question 6

Ground-Up Construction Corporation has a right of action against Heavyquip,Inc. Ground-Up Construction merges with Investors Development,Inc.,with Investors absorbing Ground-Up. After the merger,Ground-Up's right of action against Heavyquip can be exercised by

Accepted Answer

A) Ground-Up. 
B) Investors. 
C) Heavyquip. 
D) no one. 
A) Ground-Up. 
B) Investors. 
C) Heavyquip. 
D) no one.

Question 7

State law establishes the procedures for asserting appraisal rights.

Accepted Answer

A) True 
 B)False

Question 8

A court can dissolve a corporation for committing fraud or misrepresentation.

Accepted Answer

A) True 
 B)False

Question 9

The results of a consolidation are the same as those of a merger.

Accepted Answer

A) True 
 B)False

Question 10

DIY Fasteners Company decides to consolidate its operations with Evergrip Studs,Inc.,to form Fit-Rite Bolts & Screws Inc.
-Evergrip owed money to Guaranty Bank and other creditors. After the consolidation,Fit-Rite must pay

Accepted Answer

A) all of Evergrip's debts. 
B) half of Evergrip's debts. 
C) none of Evergrip's debts. 
D) only debts that Evergrip incurred after consolidation was proposed. 
A) all of Evergrip's debts. 
B) half of Evergrip's debts. 
C) none of Evergrip's debts. 
D) only debts that Evergrip incurred after consolidation was proposed.

Question 11

The shareholder's appraisal right does not extend to share exchanges and sales of substantially all of the corporate assets.

Accepted Answer

A) True 
 B)False

Question 12

Ingre is a shareholder of Jazz Street Studios,Inc. Ingre could normally exercise appraisal rights if Jazz Street participated in

Accepted Answer

A) a share exchange. 
B) none of the choices. 
C) a takeover. 
D) a winding up. 
A) a share exchange. 
B) none of the choices. 
C) a takeover. 
D) a winding up.

Exam 35: Corporate Mergers, takeovers, and Termination

The shareholder's appraisal right extends to mergers and consolidations.

In a share exchange,one corporation will issue shares or pay some fair consideration to the shareholders of another corporation that will then cease to exist.

Broncobuster BarBQ Company and Cowpuncher Cuisine,Inc. decide to combine. Deanna,a Cowpuncher shareholder,is dissatisfied with the price that she will receive for her stock. In the absence of fraud or other illegal conduct,Deanna's exclusive remedy is to

The articles of merger include changes that differ from Hilltop's articles of incorporation. The articles of incorporation

When deciding which form of business organization to choose,businesspersons normally consider only one factor.

Ground-Up Construction Corporation has a right of action against Heavyquip,Inc. Ground-Up Construction merges with Investors Development,Inc.,with Investors absorbing Ground-Up. After the merger,Ground-Up's right of action against Heavyquip can be exercised by

State law establishes the procedures for asserting appraisal rights.

A court can dissolve a corporation for committing fraud or misrepresentation.

The results of a consolidation are the same as those of a merger.

DIY Fasteners Company decides to consolidate its operations with Evergrip Studs,Inc.,to form Fit-Rite Bolts & Screws Inc. -Evergrip owed money to Guaranty Bank and other creditors. After the consolidation,Fit-Rite must pay

The shareholder's appraisal right does not extend to share exchanges and sales of substantially all of the corporate assets.

Ingre is a shareholder of Jazz Street Studios,Inc. Ingre could normally exercise appraisal rights if Jazz Street participated in

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