_____ When a statutory merger has been effected,
A) A new company is formed to carry on the businesses of two previously existing companies.
B) One of the combining companies ceases its legal existence.
C) A parent-subsidiary relationship is formed.
D) A pooling of interests has occurred.
E) None of the above.

Question

Quizplus · Accepted Answer

In a statutory merger, one of the combining companies absorbs the other and continues to exist, while the other company ceases to exist legally. This process does not necessarily create a new company, form a parent-subsidiary relationship, or involve a pooling of interests.

_____ When a Statutory Merger Has Been Effected