A consolidation:
A) has precisely the same result as a merger.
B) is the most typical form of business combination used today.
C) is always illegal (in contrast to mergers,which are legal under state law).
D) requires the assent of the board of directors and shareholders of each corporation.

Question

Quizplus · Accepted Answer

A consolidation requires the assent of the board of directors and shareholders of each corporation involved. A consolidation and a merger are not precisely the same thing, although they are similar. Consolidations are less common than mergers, but they are not illegal (in contrast to what choice C suggests).

A Consolidation