A statutory merger is a(n)
A) business combination in which only one of the two companies continues to exist as a legal corporation.
B) business combination in which both companies continue to exist.
C) acquisition of a competitor.
D) acquisition of a supplier or a customer.
E) legal proposal to acquire outstanding shares of the target's stock.

Question

Quizplus · Accepted Answer

A statutory merger is a business combination in which one company ceases to exist as a legal corporation, and its assets and liabilities are absorbed by the surviving company. Therefore, only one of the two companies continues to exist as a legal entity after the merger.

A Statutory Merger Is A(n)