Asked by Sticky Mochi on Jul 25, 2024
Verified
Building Corporation and Construction Inc. combine so that only Construction continues to exist. This is
A) a takeover.
B) a merger.
C) a liquidation.
D) a share exchange.
Merger
The combining of two or more entities into one, through either the acquisition of one by another or the consolidation of both into a new entity.
Building Corporation
A company engaged in the construction of buildings, ranging from residential to commercial projects.
- Comprehend the basic distinctions among mergers, consolidations, takeovers, and share exchanges.
- Distinguish between the legal characteristics of surviving and extinct entities in the context of mergers and consolidations.
Verified Answer
DM
Debasmita MajumdarJul 30, 2024
Final Answer :
B
Explanation :
When two companies combine and only one of the surviving companies continues to exist, it is considered a merger. In this case, Building Corporation and Construction Inc. combine, with only Construction continuing to exist, making it a merger.
Learning Objectives
- Comprehend the basic distinctions among mergers, consolidations, takeovers, and share exchanges.
- Distinguish between the legal characteristics of surviving and extinct entities in the context of mergers and consolidations.