Which of the following statements is true regarding a statutory merger?
A) The original companies dissolve while remaining as separate divisions of a newly created company.
B) Both companies remain in existence as legal corporations with one corporation now a subsidiary of the acquiring company.
C) The acquired company dissolves as a separate corporation and becomes a division of the acquiring company.
D) The acquiring company acquires the stock of the acquired company as an investment.
E) A statutory merger is no longer a legal option.

Question

Quizplus · Accepted Answer

In a statutory merger, the acquired company ceases to exist as a separate legal entity and becomes part of the acquiring company, often as a division.

Which of the Following Statements Is True Regarding a Statutory