Mergers and Acquisitions Self-Quiz








In a merger transaction, X Corp is going to disappear. The other company, Y Corp, will continue to do business. In this context, Y Corp is known as the:
Choice 1 merged company.
Choice 2 surviving company.
Choice 3 affiliated company.
Choice 4 combined company.
In a merger or consolidation, the debts, liabilities, rights, and obligations of the non-surviving firm are:
Choice 1 the responsibility of the shareholders of the non-surviving firm.
Choice 2 the responsibility of the surviving firm.
Choice 3 the responsibility of the management of the non-surviving firm.
Choice 4 extinguished.
In a standard merger transaction, A is the selling corporation and B is the buying corporation. Which of the following individuals will have the right to vote on the transaction?
Choice 1 The shareholders of A Corp.
Choice 2 The shareholders of B Corp.
Choice 3 The shareholders of the buying corporation and the selling corporation.
Choice 4 Neither the shareholders of the buying corporation nor those of the selling corporation.
To complete a merger transaction, the board of the selling company must complete which of the following tasks?
Choice 1 Adopt a plan of merger that is distributed to shareholders.
Choice 2 Recommend the transaction to the shareholders prior to the shareholder vote.
Choice 3 File a certificate of merger after an approving shareholder vote.
Choice 4 All of the above.
A “short-form” merger is completed by a:
Choice 1 large company buying a small firm with under $5 million in assets.
Choice 2 public company buying a private firm with under $10 million in assets.
Choice 3 parent company buying a subsidiary of which it owns 90%.
Choice 4 close corporation buying another close corporation of which it owns more than 50%.

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