Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Shareholders are not required to vote to approve a plan of merger.

Accepted Answer

A) True 
 B)False

Question 4

Dissolution of a corporation can be initiated by

Accepted Answer

A)   corporate ethics groups.
B)   competitors.
C)   customers, suppliers, and other corporate stakeholders.
D)   a court order.E) A) and B)
F) A) and C)

Question 5

Dissolution of a corporation can be brought about by the shareholders' majority vote to initiate dissolution proceedings.

Accepted Answer

A) True 
 B)False

Question 6

Appraisal rights do not normally apply to short-form mergers.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)   a holding company.
B)   a parent corporation.
C)   the appropriate state's secretary of state.
D)   the U.S. Department of Commerce.E) A) and B)
F) B) and C)

Question 8

All states have statutes authorizing consolidations of domestic corporations.

Accepted Answer

A) True 
 B)False

Question 9

A merger between Beverage Corporation and Creamery Inc. can be expressed as Beverage + Creamery =

Accepted Answer

A)   Creamery.
B)   Dairy Company.
C)   Dairy Company + EZ Sip Inc.
D)   EZ Sip Inc.E) A) and B)
F) A) and D)

Question 10

Fact Pattern 31-2 Dynamo Corporation combines its assets and liabilities with those of Energy Company to form Fuel Inc. Dynamo and Energy cease to exist.
Refer to Fact Pattern 31-2. The formation of Fuel Inc. is

Accepted Answer

A)   a takeover.
B)   a consolidation.
C)   a liquidation.
D)   a share exchange.E) A) and D)
F) B) and C)

Question 11

Burgers Inc. merges with Chicken Corporation with Burgers as the surviving corporation. After the merger, the shareholders of Chicken

Accepted Answer

A)   will be paid out or will own shares of Burgers.
B)   will be creditors of Burgers.
C)   will lose their investment value in Chicken.
D)   will have the option of becoming employees of Burgers in order to receive their value.E) A) and B)
F) A) and C)

Question 12

In a consolidation, the newly formed corporation acquires all of the assets and liabilities of both corporations that were consolidated.

Accepted Answer

A) True 
 B)False

Exam 31: Combining and Dissolving a Corporation

Burgers Inc. merges with Chicken Corporation with Burgers as the surviving corporation. After the merger, the shareholders of Chicken

Correct Answer
verified

Dissolution of a corporation can be brought about by the shareholders' majority vote to initiate dissolution proceedings.

Correct Answer
verified

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

Correct Answer
verified

In a consolidation, the newly formed corporation acquires all of the assets and liabilities of both corporations that were consolidated.

Correct Answer
verified

Fact Pattern 31-2 Dynamo Corporation combines its assets and liabilities with those of Energy Company to form Fuel Inc. Dynamo and Energy cease to exist. Refer to Fact Pattern 31-2. The formation of Fuel Inc. is

Correct Answer
verified

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

Correct Answer
verified

Appraisal rights do not normally apply to short-form mergers.

Correct Answer
verified

Shareholders are not required to vote to approve a plan of merger.

Correct Answer
verified

All states have statutes authorizing consolidations of domestic corporations.

Correct Answer
verified

A merger between Beverage Corporation and Creamery Inc. can be expressed as Beverage + Creamery =

Correct Answer
verified

Dissolution of a corporation can be initiated by

Correct Answer
verified

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

Correct Answer
verified

Exam 31: Combining and Dissolving a Corporation

Burgers Inc. merges with Chicken Corporation with Burgers as the surviving corporation. After the merger, the shareholders of Chicken

Correct AnswerverifiedShow Answer

Dissolution of a corporation can be brought about by the shareholders' majority vote to initiate dissolution proceedings.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In a consolidation, the newly formed corporation acquires all of the assets and liabilities of both corporations that were consolidated.

Correct AnswerverifiedShow Answer

Fact Pattern 31-2 Dynamo Corporation combines its assets and liabilities with those of Energy Company to form Fuel Inc. Dynamo and Energy cease to exist. Refer to Fact Pattern 31-2. The formation of Fuel Inc. is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Appraisal rights do not normally apply to short-form mergers.

Correct AnswerverifiedShow Answer

Shareholders are not required to vote to approve a plan of merger.

Correct AnswerverifiedShow Answer

All states have statutes authorizing consolidations of domestic corporations.

Correct AnswerverifiedShow Answer

A merger between Beverage Corporation and Creamery Inc. can be expressed as Beverage + Creamery =

Correct AnswerverifiedShow Answer

Dissolution of a corporation can be initiated by

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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