Share Exchanges and Combinations Self-Quiz

 

 

 

 

 

 

 

 

 

ZXY and CBA are corporations undertaking a consolidation. Which of the following groups is allowed to vote on the transaction?
Choice 1 Shareholders of the selling firm.
 Choice 2 Shareholders of the buying firm.
 Choice 3 Shareholders of both ZXY and CBA.
 Choice 4 Shareholders of neither ZXY nor CBA.
In an all stock or partial stock transaction, which combines two firms, the court may have a particularly difficult time in an appraisal action because:
Choice 1 there will be a larger number of people requesting appraisal.
 Choice 2 the court will have to value the selling company and the consideration.
 Choice 3 stock sales complicate the liability of the directors of both companies.
 Choice 4 such transactions do not complicate a combination transaction.
A company that has taken has a large amount of debt and a high monthly debt payment is said to have a(n):
Choice 1 troubled balance sheet.
 Choice 2 inbalance in its debt/asset ratio.
 Choice 3 high debt load / high debt service.
 Choice 4 complicated lending structure.
After a consolidation, which of the following companies exists after the transaction?
Choice 1 The buying corporation.
 Choice 2 The selling corporation.
 Choice 3 The surviving corporation.
 Choice 4 Neither corporation.

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