One corporation can acquire all the shares of another corporation through a share ________.In this arrangement,both corporations retain their separate legal existence,with the parent corporation owning all the shares of the subsidiary corporation.

Question

Quizplus · Accepted Answer

The phrase "share exchange" indicates that two corporations are exchanging shares, with one acquiring all of the shares of the other. This is a common method of corporate acquisition, where the acquiring corporation becomes the sole owner of the subsidiary corporation, without having to merge or dissolve the subsidiary.

One Corporation Can Acquire All the Shares of Another Corporation